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Eric Jiang

Hong Kong’s retail sales jumped by 12.8 per cent in March, bringing first-quarter growth to 9.8 per cent, driven by a spurt in electric car sales ahead of the withdrawal of tax breaks.
Provisional figures released by the Census and Statistics Department on Wednesday showed that retail sales reached HK$33.9 billion (US$4.32 billion) in March.
The March increase was largely driven by an 80.8 per cent surge in the value of car sales as buyers raced to make deals before tax breaks for electric cars ended at the close of the month.
A government spokesman said retail sales continued to strengthen.
“Looking ahead, the near-term outlook for retail sales is broadly positive, underpinned by recovering local demand, sustained growth in inbound tourism, and a favourable macro-financial environment,” he said.
“The government will continue to monitor the downside risks arising from the evolving geopolitical tensions, for any potential implications for consumer spending in the local market.”
On April 1, Hong Kong scrapped the first registration tax concessions (FRT) for private electric cars, including the “One-for-One Replacement Scheme”, following the announcement in Financial Secretary Paul Chan Mo-po’s February budget address.
The scheme offered car owners a higher FRT concession of up to HK$172,500 (US$22,056) when they scrapped and deregistered an eligible older private car in exchange for a new electric vehicle purchase.




The Transport Department said it received around 13,500 applications under the scheme and had processed about 85 per cent of them by the end of April, with the remaining cases – mostly submitted in late March – expected to be cleared by mid-May.
Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, said the retail performance in March was stable, with growth broadly in line with the same period in 2023, when cross-border travel between mainland China and Hong Kong first resumed after the Covid-19 pandemic.
Sales of electrical goods rose by 30.1 per cent year on year to HK$3.23 billion in March, while jewellery, watches and clocks increased by 27.2 per cent.
Tse said the surge in electrical goods sales was fuelled by new product launches, such as the iPhone 17 and DJI’s Pocket 4, while jewellery demand was driven by rising gold prices.
Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank, said the results showed an “ongoing divergence” in consumption patterns with better performance in jewellery and electronics versus slower growth in consumer staples.
“It likely reflects stronger demand from tourists, while local households remain cautious about day-to-day spending, with options for cross-border purchases,” he said.
Meanwhile, online sales also jumped 35.1 per cent year on year in March to about HK$3.3 billion, accounting for 9.7 per cent of the total sales value.
Tse said the growth in e-commerce was also driven in part by sales of vehicles and electrical goods, with many consumers making purchases through online platforms.
Only a few categories recorded declines. Fuel sales decreased by 14.2 per cent in March from a year earlier, due to the conflict in the Middle East.
The war, which broke out after the United States and Israel attacked Iran in late February, has triggered a global fuel crisis, pushing Hong Kong’s fuel prices to the highest level in the world in the first quarter.
Tse said the conflict was “more challenging” for retailers, as it would increase logistics costs and affect their shipping schedules.
The retail sales were part of a macroeconomic indicator – private consumption expenditure – which jumped by 5 per cent in real terms in the first quarter from a year ago and helped fuel the city’s economic growth.
Hong Kong’s gross domestic product (GDP) grew at the fastest rate in nearly five years in the first three months of this year, at 5.9 per cent year on year. It was the sharpest quarterly growth since the second quarter of 2021, when it rose at 7.6 per cent.
Tse said that among the 3,600 shops surveyed recently, more than half reported positive performance, with sales expected to rise by single digits to low double digits in April, thanks to an influx of tourists over the Ching Ming Festival – also known as tomb-sweeping day – and a low base in the same period last year.
Aviation authorities said on Wednesday that fewer than 5 per cent of Hong Kong flights for May and June combined have been cancelled, and about 1 per cent for the peak July travel period, despite the crisis.
More than 14.3 million tourists came to Hong Kong in the first quarter, a 17 per cent increase from a year earlier, according to the government.


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Hong Kong retail sales jump 12.8% in March on back of higher car sales

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Consumers at a shopping centre in Tsim Sha Tsui. Photo: Jelly Tse

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A shopping centre in Tsim Sha Tsui. Photo: Jelly Tse

Gold jewellery on display in a shop in Tsim Sha Tsui. Sales of jewellery, watches, clocks and valuable gifts have risen by 31.1 per cent. Photo: Karma Lo

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Hong Kong

Hong Kong Economy

Retail sales reached HK$33.9 billion as buyers raced to make deals before first registration tax concessions for electric cars ended


Retail sales reached HK$33.9 billion as buyers raced to make deals before first registration tax concessions for electric cars ended.


Hong Kong tourism

Hong Kong society

Hong Kong Retail Management Association (HKRMA)

Hong Kong retail sales jump 12.8% in March on back of higher car sales

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Retail sales reached HK$33.9 billion as buyers raced to make deals before first registration tax concessions for electric cars ended

Retail sales reached HK$33.9 billion as buyers raced to make deals before first registration tax concessions for electric cars ended