Financial Insights | Three Departments: Support for Scrapping and Upgrading National III and IV Emission Standard Freight Vehicles
Yin Shi Finance – Zhejiang Daily Group
March 19, 2025 – The China Association of Automobile Manufacturers (CAAM) has urged industry enterprises to cease the frequent release of weekly sales rankings that do not reflect market trends, advocating a shift from “data competition” to “service and value competition.”
Macroeconomic Updates
The Ministry of Industry and Information Technology has published the “Guidelines for the Construction of Digital Energy and Carbon Management Centers for Industrial Enterprises and Parks.” This initiative aims to implement precise control of energy consumption and carbon emissions through the operations of these centers, enhancing energy-saving and carbon reduction management capabilities.
The National Development and Reform Commission, along with four other departments, has issued opinions to promote the high-quality development of the renewable energy green power certificate market. This includes a gradual increase in the mandatory consumption of green certificates and the proportion of green power consumption, alongside strengthening the construction of trading platforms for these certificates.
The Ministry of Transport, along with the National Development and Reform Commission and the Ministry of Finance, has released a notification regarding the implementation of scrapping and upgrading old freight vehicles. This initiative supports the scrapping of National III and IV emission standard vehicles and aims to accelerate the renewal of higher standard, lower emission freight vehicles. Differential subsidies will be implemented based on the type of scrapped vehicle, the timing of scrapping, and the power type of newly purchased vehicles. The subsidy policy will be effective from January 1, 2025, to December 31, 2025.
The National Energy Administration reported that in February, the total electricity consumption reached 743.4 billion kilowatt-hours, marking an increase of 8.6% year-on-year. The electricity consumption breakdown included 9.8 billion kilowatt-hours for the primary industry (up 10.2%), 462.4 billion kilowatt-hours for the secondary industry (up 12.4%), and 142 billion kilowatt-hours for the tertiary industry (up 9.7%).
Industry Trends
CAAM has noted that the frequent publication of sales rankings by some car manufacturers exacerbates unhealthy competition. The association has called on industry players to focus on reporting operational data on a monthly, quarterly, or annual basis instead.
According to the China Index Academy, the total bond financing for real estate companies in February was 22.3 billion yuan. Of this, 14.4 billion yuan was in credit bonds, accounting for 64.6%; 3.59 billion yuan was from overseas bonds, making up 16.1%; and 4.32 billion yuan was in asset-backed securities (ABS), representing 19.3%.
The China Real Estate Association will hold a report meeting on the real estate market outlook for 2025, along with a discussion for national first-tier real estate developers in Beijing on March 27-28. The meeting aims to help developers understand market trends amid macroeconomic conditions and explore new development models to stabilize the real estate market.
Market Updates
The Game Committee reported that some major gaming products had heightened activity in February, leading to a revenue decline in the gaming market. The total income for the Chinese gaming market in February was 27.935 billion yuan, a month-on-month decrease of 10.11%, but a year-on-year increase of 12.30%.
Corporate Developments
CATL has partnered with NIO to create the world’s largest and most advanced battery swap service network for passenger vehicles. Additionally, CATL is set to invest up to 2.5 billion yuan in NIO.
Alibaba’s CEO, Wu Yongming, advocates for comprehensive “AI integration” across existing business operations, stating that performance in 2025 will be evaluated based on AI-driven growth.
Li Auto has announced its next-generation autonomous driving architecture, MindVLA, which integrates spatial, language, and behavioral intelligence, transforming vehicles into attentive, smart drivers.
Xiaomi Group reported a revenue of 365.91 billion yuan in 2024, up 35.0%, with a net profit of 27.2 billion yuan, up 41.3%, both reaching historic highs. The company aims to deliver 350,000 electric vehicles by 2025.
Important Announcements
China Unicom announced a net profit increase of 10.5% year-on-year for 2024, with signed contracts in intelligent computing exceeding 26 billion yuan.
Yulong Co. has announced plans for a significant matter, leading to a stock suspension. New Energy Group has also announced a major asset restructuring, resulting in a stock suspension.
In other news, the company plans to purchase up to 30 billion yuan worth of servers from various suppliers to support its computing-related business.
China Communication Technology Institute has initiated AI safety benchmarking for the “Trusted AI” project.
