What's Happening?
During the extended Lunar New Year holiday, travel across China surged by 8.2% compared to the previous year, reaching nearly 2.8 billion cross-regional trips. The holiday period was extended from eight to nine days, contributing to the increase in travel.
Highways were the dominant mode of transportation, accounting for 86% of total travel, supported by the rapid uptake of electric vehicles and expanded charging infrastructure. The number of new-energy vehicles on highways increased by 34% to 11.52 million per day. Public transportation also saw significant gains, with the China State Railway Group reporting a record 121 million passenger trips during the holiday, an 11.5% increase from the previous year. To accommodate the high demand, thousands of temporary trains were added, including over 1,000 overnight high-speed services.
Why It's Important?
The surge in travel during the extended Lunar New Year holiday highlights the growing mobility and economic activity in China. The increase in travel, particularly through highways and public transportation, indicates a robust recovery in domestic tourism and consumer confidence. The rise in electric vehicle usage and the expansion of charging infrastructure reflect China's commitment to sustainable transportation and its efforts to reduce carbon emissions. This trend could have significant implications for the global automotive industry, particularly in the electric vehicle sector, as China continues to lead in the adoption of new-energy vehicles. Additionally, the strong performance of the car-rental market, with an 80% increase in orders, suggests a shift in consumer preferences towards more flexible travel options.
