Starting from May 1st, the Guangdong Province will offer a subsidy of 8000 yuan for the purchase of new energy vehicles.

The Office of the People’s Government of Guangdong Province recently issued a notice on “Further Promoting Consumer Measures in Guangdong Province”, proposing four categories of measures to promote consumption. Among them, it includes encouraging the purchase of new energy vehicles.

From May 1st to June 30th, 2022, personal consumers who purchase new energy vehicles within the scope of the old-for-new promotion model in the province will be granted a subsidy of 8,000 yuan per vehicle. This subsidy cannot be enjoyed in combination with the old-for-new special action subsidy. The subsidy will be organized and implemented by the Guangdong Provincial Development and Reform Commission and the Provincial Finance Department.

The details are as follows:

1. Encourage automobile consumption
   (1) Continue to implement the special action of old-for-new vehicles, and grant subsidies to scrapped or transferred personal Guangdong license plate vehicles that are replaced with new vehicles within the province and have been registered in the province. Specifically:
   Subsidies for purchasing new energy vehicles after scrapping old cars: 10,000 yuan/vehicle;
   Subsidies for purchasing fuel vehicles after scrapping old cars: 5,000 yuan/vehicle;
   Subsidies for purchasing new energy vehicles after transferring old cars: 8,000 yuan/vehicle;
   Subsidies for purchasing fuel vehicles after transferring old cars: 3,000 yuan/vehicle.
   The specific promotion model, subsidy process, and other related matters will be executed in accordance with the relevant announcements of the “Guangdong Province Automobile Replacement Special Action” and organized and implemented by the Guangdong Provincial Development and Reform Commission and the Provincial Finance Department.
   (2) Encourage the purchase of new energy vehicles. From May 1 to June 30, 2022, personal consumers who purchase new energy vehicles within the scope of the old-for-new promotion model in the province will be granted a subsidy of 8,000 yuan/vehicle. This subsidy cannot be enjoyed in combination with the subsidy of the old-for-new special action. The subsidy will be organized and implemented by the Guangdong Provincial Development and Reform Commission and the Provincial Finance Department.
   (3) Further optimize automobile purchase management. According to national requirements, Guangzhou and Shenzhen will further revise and improve the qualifications for purchasing cars, and increase the issuance of automobile increment indicators. In May and June, on the basis of the original indicators, Guangzhou will add 30,000 car indicators and Shenzhen will add 10,000 car indicators to better meet the needs of the masses. Localities cannot impose measures restricting automobile purchases.

2. Promote home appliance consumption
   (4) Encourage production and sales enterprises of home appliances in various cities to organize activities that benefit the people and promote consumption, with a focus on increasing discounts for green and intelligent home appliances and promoting the upgrading and replacement of home appliances in our province.
   (5) Local governments should adopt policies that encourage enterprises to give more discounts and provide government support, and formulate specific assessment methods and evaluation mechanisms to increase support for home appliance production and sales enterprises.
   (6) The provincial government will provide rewards to cities with significant effects on promoting home appliance consumption based on sales performance. The specific plan will be formulated by the Provincial Department of Commerce and the Provincial Finance Department.

3. Issue consumer coupons
   (7) Encourage various regions to issue consumer coupons, benefit-based coupons, etc., for consumption in the retail, catering, cultural tourism, accommodation, and sports fields, to stimulate the consumption market.
   (8) The province will implement a policy of rewards and subsidies for various regional consumer promotion campaigns.1. Include the consumer promotion policies announced since the beginning of this year in the scope of bonuses and rewards.

4. Cities where no consumer promotion policies have been announced must formulate specific implementation plans and launch consumer promotion activities before May 1.

5. For Pearl River Delta cities (excluding Shenzhen), a subsidy of 50% of the actual amount spent on issuing consumer coupons will be given, with each city receiving a maximum subsidy of no more than 30 million yuan.

6. Eastern and Western Guangdong and cities in northern Guangdong must issue consumer coupons of no less than 5 million yuan, and the provincial finance will provide each city with a basic subsidy of 5 million yuan. Encourage the cities in Eastern and Western Guangdong and northern Guangdong to increase the amount of consumer coupons issued. For the excess amount, a subsidy of 70% will be given, with each city receiving a maximum subsidy of no more than 25 million yuan.

7. The specific plan will be formulated by the Provincial Department of Commerce and the Provincial Department of Finance.

IV. Carry out prize-winning invoice activities
(IX) The province has set up a 30 million yuan prize-winning invoice fund, and scientifically formulated rewarding measures around the retail, catering, tourism, accommodation, sports, and other sectors. “Prize-Winning Invoice” activities will be launched throughout the province based on the invoice amount to enhance market consumption vitality. The activity period is from May 1 to the end of the year. The specific plan will be formulated by the Provincial Taxation Bureau and the Provincial Department of Finance.

Since the outbreak of the epidemic, automobile production and consumption have been greatly impacted, and the rise in raw material prices has also caused many automobile companies to adjust their official guidance prices. The Guangdong government’s move is aimed at stimulating automotive consumption through administrative means, which is beneficial to the rapid recovery of automobile production and sales volumes in the market.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.