(Yicai) Jan. 14 -- China’s vehicle production and sales rose to new record highs last year, topping 30 million each for the third consecutive year, buoyed by trade-in policies and a booming new energy vehicle sector.

Car production gained 3.7 percent to 31.28 million, while sales climbed 4.5 percent to 31.43 million, according to the China Association of Automobile Manufacturers.

Despite inadequate consumer confidence, greater international trade protectionism, and fiercer competition, output and sales stayed above 30 million thanks to a series of effective policies and well-implemented subsidies across regions, said CAAM Deputy Secretary-General Chen Shihua.

More than 2.92 million vehicles were scrapped and replaced, while over 3.7 million were replaced and upgraded, driving sales to more than CNY920 billion (USD135.1 billion), per CAAM data. As of Dec. 31, national inventories had fallen 3.9 percent to 1.106 million from a year earlier.

Auto exports jumped over 19 percent to 5.86 million, with those of passenger cars jumping 19.7 percent to 4.96 million and those of commercial vehicles gaining 17.5 percent to 904,000.

New energy vehicle production and sales surged 34 percent and 36 percent to 12.89 million and 12.87 million, respectively, mainly because of favorable policies, abundant supply, lower prices, and continuous improvement in infrastructure, according to the CAAM.

NEVs accounted for nearly 41 percent of all vehicles sold in China last year, up from 31.7 percent the year before.

On Jan. 8, the National Development and Reform Commission, China’s state planner, announced it would expand the scope of the vehicle scrapping and replacement policy and improve the subsidy standards for trade-ins. The maximum amount for scrapping an old passenger car and buying a new one is CNY15,000 (USD2,050).

Trade-in policies will drive over 4.1 million additional vehicle sales, boosting retail sales by more than CNY580 billion, the China Automotive Strategy and Policy Research Center forecasts.

As the combined effects of these policies continue to unfold, car sales could rise 4.7 percent to 32.9 million this year, Chen said, adding that NEV sales may soar over 24 percent to 16 million.

Editor: Futura Costaglione