Since these mortgage-burdened groups – middle-class, women, urban residents and young-to-mid-age buyers – represent highly attractive consumer segments, a substantial reduction in mortgage pressure will unlock considerable upside for China’s car market. The “mortgage relief effect” is already visible in the premium segment: in 2023–2024, brands such as AITO, Li Auto and Fang Cheng Bao – appealing primarily to middle-aged male buyers – rapidly became the favored choices among households repaying mortgages early；

As mortgage burdens ease further for middle-class, female, urban and young-to-mid-age households, the impact will extend well beyond cars. These households are expected to drive consumption upgrades across multiple sectors including tourism, education, financial services, beauty and home improvement. Between 2025 and 2030, car-buying households are set to transform into a central force of new consumption, accelerating the activation of China’s “domestic demand expansion” policy