"17 Million Won Subsidy Released"... Chaos at Zhong Citro?n Store

Recent Weakness in Durable Goods Consumption Boost
As Part of Revitalizing Stagnant Local Economies

In Hubei Province, China, vehicle purchase subsidies amounting to 90,000 yuan (approximately 17.01 million KRW) have been announced, leading to a sharp increase in sales. The strategy of joint subsidy support by local governments and automobile companies aims to improve recently sluggish car sales and revitalize the regional economy, gaining strong momentum.

According to local media such as China Oriental Wealth Network and Economic Observer on the 8th, the recent vehicle purchase subsidies in Hubei Province have become a hot topic on the internet. The Economic Observer reported that "recently, Citro?n stores in Hubei Province are as chaotic as a fruit and vegetable market," reflecting the local atmosphere.

Here is the situation. The Hubei provincial government decided to provide vehicle purchase subsidies for the month of March, and with active participation from companies, the discount amount rose from the initial 60,000 yuan to 90,000 yuan. In particular, Dongfeng Motor Group, a state-owned enterprise that jointly produces with Honda, Nissan, Citro?n, Peugeot, and others, received enthusiastic responses. Currently, Dongfeng Citro?n’s C6/C3-XR models can be purchased in Hubei Province with discounts of up to 90,000 yuan during the subsidy period. Nissan vehicles also offer support funds up to 80,000 yuan, and Honda offers subsidies of 68,000 yuan.

Due to these subsidies, thousands of people flocked to related local stores, and store employees were unable to handle all consultations, reportedly having to start internet live broadcasts, according to local media. It is known that Dongfeng Honda’s 25 stores in Hubei Province achieved a total of 1,469 orders within five days of the event’s start. This corresponds to an average of 294 vehicles per day, a 359% increase compared to the February average.

The event will continue until the 31st and applies to vehicles produced in the Wuhan Economic and Technological Development Zone when purchased in Hubei Province. However, it is reported that major vehicle models are currently sold out, making waiting or inability to purchase highly likely.

This subsidy payment was promoted as part of efforts to stimulate the recently sluggish durable goods consumption in China and to revitalize the local economy. According to the China Passenger Car Association, cumulative passenger car sales from January 1 to February 19 totaled 2.022 million units, a 26% decrease compared to the same period last year. Earlier, Dongfeng Group announced that its automobile sales in January this year decreased by 64.6% compared to the same period last year.