According to a report by the Zhixun Finance APP, on July 25th, the National Development and Reform Commission and the Ministry of Finance jointly issued "Several Measures to Support Large-Scale Equipment Renewal and Replacement of Consumer Goods." BOCOM International believes that this new stimulus policy is significantly stronger than the one at the end of April and is conducive to further stimulating the replacement of old heavy trucks with low-emission heavy trucks, as well as accelerating the replacement of old fuel passenger vehicles. Overall, the bank believes that the sales of new energy vehicles and natural gas heavy trucks will benefit from this round of stimulus policy. Related high-quality targets for commercial vehicles/passenger vehicles include China National Heavy Duty Truck Group Co., Ltd. (03808), Weichai Power Co., Ltd. (02338), BYD Company Limited (01211), Li Auto Inc (02015), and NIO Inc (09866).

"Measures" increase the subsidy for consumers to replace old cars with new cars. The subsidy standards for replacing new energy passenger cars or passenger cars with an exhaust volume of 2.0 liters or less have been raised to RMB 0.02 million yuan (previously RMB 0.01 million yuan) and RMB 15,000 yuan (previously RMB 7,000 yuan) respectively.

In addition, "Measures" increase the subsidy standards for updating operating trucks and new energy buses. 1) Support the scrapping and updating of old operating trucks. For scrapped and updated qualified trucks, the average subsidy is RMB 0.08 million yuan per vehicle; for updated new trucks without scrapping, the average subsidy is RMB 0.035 million yuan per vehicle; for only scrapping old operating diesel trucks in advance, the average subsidy is RMB 0.03 million per vehicle. 2) Increase the subsidy standards for updating new energy buses and power batteries. For updating new energy buses and power batteries with a vehicle age of 8 years or more, the average subsidy is RMB 0.06 million yuan per vehicle.