(Yicai) Dec. 10 -- China's sales of passenger vehicles surged 16.5 percent in November from a year earlier thanks to generous government subsidies for discarding old, outdated cars for new ones and vehicle trade-ins.

Just over 2.4 million autos were sold in November, according to data released yesterday by the China Passenger Car Association. Of this, new energy vehicle sales soared 50.5 percent to 1.27 million units. Their penetration rate is now 52.3 percent, up from 40.4 percent a year ago.

People who purchase an electric car to replace an old vehicle that does not meet the latest emissions standards can receive a one-off subsidy of CNY20,000 (USD2,759), while those buying a fossil fuel-powered auto with a displacement of 2 liters or less will receive a subsidy of CNY15,000 (USD2,069). As a result, those wanting to upgrade their vehicle will generally choose to buy an NEV.

And as for trade-ins, those who swap their auto for an NEV will receive around CNY3,000 (USD414) more than those who opt for a gasoline-powered car.

Although the trade-in subsidies have only been in place for a short time, they are having a much bigger effect on boosting sales than the vehicle scrapping ones, said Cui Dongshu, secretary-general of CPCA.

There were more than four million applications for vehicle upgrades and trade-in subsidies as of Nov. 18, at around two million for each type, according to the latest data from the Ministry of Commerce.

China’s passenger car sales climbed 4.7 percent in the first 11 months from a year earlier to 20.2 million units. Of this, NEV sales surged 41.2 percent to 9.6 million autos.

Sales are expected to expand by around 6 percent this year from 2023, which is much better than had been anticipated at the beginning of the year, the association said. Several major auto manufacturers have already met their sales targets for the year and are likely to push some sales back to January next year to get 2025 off to a good start.

Editor: Kim Taylor