In a bid to stimulate automobile consumption and promote high-quality development in the auto market, China has launched a nationwide pilot program for auto circulation and consumption reform, which will last from 2025 to 2027.

The initiative, announced in a jointly released document by the general offices of the Ministry of Commerce, the National Development and Reform Commission, and six other government departments on Jan 20, is part of China's broader efforts to implement consumer goods trade-in policies and unlock the potential of the auto market, contributing to sustainable economic growth and industrial upgrading.

The document encourages relevant regions to tailor their approaches to local realities, exploring innovative practices and deepening reforms in areas such as new cars, used cars, scrapped vehicles, and the auto aftermarket with focus on management systems, technical standards, and data platforms in order to build a unified, efficient, green and circular automotive circulation and consumption mega-market.

Free trade zones and comprehensive bonded zones，such as the China (Shanghai）Pilot Free Trade Zone, are encouraged to explore ways to trade, transfer, and exhibit traditional historical vehicles, according to the document.

The program aims to cultivate a group of innovative enterprises and develop integrated projects combining commerce, tourism, culture, sports, and health by 2027, as well as establish replicable models and experiences to invigorate the auto market.

Key tasks include stabilizing and expanding auto consumption, improving the efficiency of used car circulation, fostering auto culture, enhancing the recycling system for scrapped vehicles, and advancing digitalization in auto circulation and consumption.