① The maximum “trade-in” or “scrap exchange” bicycle subsidy in Jiangxi Province, Yunnan Province, Henan Province, Beijing, Shanghai, Ningxia and other places is 10,000 yuan, and individual consumers in Inner Mongolia can waste and replace new energy passenger vehicles up to 12,000 yuan/vehicle. ② According to Cui Dongshu, Secretary General of the Passenger Federation, although the “trade-in” policy brought about wait-and-see sentiment among consumers in the early stages, it can still be expected to boost the car market.
Financial Services Association, May 27 (Reporter Zhang Yipeng) Thirty days after 7 departments including the Ministry of Commerce and the Ministry of Finance jointly issued the “Automobile Trade-In Subsidies Implementation Rules” (hereinafter referred to as the “Rules”), according to incomplete statistics from the Financial Federation reporter, more than 30 provinces and cities have introduced corresponding policies.
On May 27, the Shenzhen Municipal Bureau of Commerce issued the “Shenzhen Action Plan to Promote the Trade-In of Consumer Goods”, which aims to increase the total retail sales rate of consumer goods by more than 7% in 2024, strive to increase the annual retail sales volume of cars above the limit by more than 10 billion yuan, add more than 30 new automobile sales companies, and promote the trade-in of automobiles, home appliances, and communication equipment products to account for more than 24%. Specific measures include expanding consumption of new energy vehicles. Implement the continuation and optimization of NEV vehicle purchase tax relief policies.
According to an announcement made by Shenzhen the day before, in order to fully implement the national work arrangements related to the promotion of a new round of large-scale equipment renewal and consumer goods trade-in, promote the trade-in of consumer goods such as automobiles and home appliances, and promote consumption upgrading, Shenzhen has invested 260 million yuan to launch an automobile “replacement and renewal” subsidy program. According to reports, individual consumers who transfer vehicles under their own name in Guangdong and buy new energy vehicles or fuel vehicles that meet the national six emission standards in Shenzhen will be given a one-time car purchase subsidy of up to 8,000 yuan.
On April 26, 7 departments including the Ministry of Commerce and the Ministry of Finance jointly issued the “Vehicle Trade-In Subsidies Implementation Rules”, which set out the clear scope and standards for subsidies, that is, individual consumers who scrap fuel passenger cars with national emission standards 3 or below or new energy passenger vehicles registered before April 30, 2018, and purchase new passenger cars that meet energy efficiency requirements can enjoy a one-time fixed subsidy. Among them, there is a subsidy of 10,000 yuan for scrapping the above two types of old passenger cars and purchasing eligible new energy passenger cars; a subsidy of 7,000 yuan for scrapping passenger cars with fuel emission standards in the country 3 or below and purchasing fuel passenger cars with a displacement of 2.0 liters or less.
Judging from the actual level of subsidies in various regions, the maximum “trade-in” or “scrap exchange” bicycle subsidies in Jiangxi Province, Yunnan Province, Henan Province, Beijing City, Shanghai City, Ningxia and other places reached 10,000 yuan, while individual consumers in Inner Mongolia scrapped and replaced new energy passenger vehicles up to 12,000 yuan/vehicle. In addition, Shenzhen has also relaxed restrictions on car purchase targets. As mentioned in the “Shenzhen Action Plan to Promote Trade-In of Consumer Goods” issued by the Shenzhen Municipal Bureau of Commerce, it is mentioned that the social security restrictions on people not registered in Shenzhen applying for the incremental index of new energy cars will be lifted, and the conditions for individuals with only one car registered in Shenzhen to apply for the incremental index of hybrid cars will be relaxed.
According to Cui Dongshu, Secretary General of the Passenger Federation, although the “trade-in” policy brought about a wait-and-see sentiment among consumers in the early stages, it can still be expected to boost the car market. “The implementation of the trade-in policy is a major benefit to the car market.” Cui Dongshu said that since the Spring Festival, consumers have been paying attention to the “trade-in” policy and expect the policy to bring benefits to car purchases, so the implementation of the policy is a major benefit to the car market. “It is estimated that the total amount of scrapped vehicles per year should reach the scale of nearly 10 million vehicles. Automobile trade-in subsidies will bring an increase of one million in the car market's private consumption of new cars, as well as an increase in annual consumption of more than 100 billion yuan. The car market is expected to clear up its sluggish state and achieve restorative growth in May.”
According to data from the Passenger Transport Federation, the market retailed 900,000 vehicles from May 1 to 19, down 5% from last year and up 19% from the same period last month; 7.267,000 vehicles have been sold since this year, up 6% from last year. “The passenger car retail market in the narrow sense of the term is about 1.65 million units this month, down 5.3% from last year and up 7.5% from the previous month. The retail sales of new energy are expected to be around 770,000 units, up 13.7% from the previous month, up 32.7% year on year, and the penetration rate is expected to increase further to 46.7%.”