On May 29th, the Shanghai Municipal People’s Government issued the “Action Plan for Accelerating Economic Recovery and Revitalization in Shanghai”, which emphasizes the need to vigorously promote automobile consumption!
Specific measures are as follows:
- Increase the quota for non-operational passenger car license plates by 40,000 within the year, and gradually reduce the purchase tax on some passenger cars according to the requirements of national policies;
- Before December 31, 2022, individuals who scrap or transfer a small passenger car registered in Shanghai and meeting relevant standards and purchase a pure electric vehicle will receive a government subsidy of 10,000 yuan per vehicle.
Other regions
Currently, many regions in China have issued policies to promote automobile consumption:
On May 23rd, the Development and Reform Commission of Shenzhen, the Bureau of Commerce of Shenzhen, the Bureau of Industry and Information Technology of Shenzhen, the Transportation Bureau of Shenzhen, the Bureau of Culture, Radio, Television, Tourism and Sports of Shenzhen, and the Health Commission of Shenzhen jointly issued the “Measures to Promote Sustained Consumption Recovery in Shenzhen”. The following are excerpts:
-
Support individual consumers to purchase new energy vehicles. Individual consumers who purchase eligible new energy vehicles and register them in Shenzhen will receive a subsidy of up to 10,000 yuan per vehicle. The policy of exempting new energy vehicles from vehicle purchase tax in accordance with national regulations will be fully implemented;
-
Increase the quota for ordinary small cars. An additional 20,000 quotas will be added for ordinary small cars. Through special lottery activities, these quotas will be distributed to applicants who have not been selected and who have participated in more than 60 sessions (including the 60th session). Winners must purchase eligible fuel or new energy vehicles (individuals who purchase new energy vehicles will receive a subsidy of up to 20,000 yuan per vehicle);
-
Relax the application conditions for hybrid small cars. Individuals who own only one registered small car in Shenzhen can purchase eligible hybrid small cars and apply for a license plate;
-
Promote the renewal and replacement of internal combustion engine tractors in ports. A subsidy of up to 50,000 yuan will be given to those who replace internal combustion engine tractors in ports with eligible new energy vehicles (including clean fuel vehicles).
On May 22nd, the Shandong Provincial Department of Commerce, in conjunction with the Provincial Development and Reform Commission, the Provincial Finance Department, and the Provincial Bureau of Statistics, issued the “Measures to Promote Automobile Consumption in Shandong Province”, which include the following measures:- Distribution of automobile consumption coupons. From the day the policy is announced until June 30th, individual consumers who purchase new energy passenger cars (excluding second-hand cars) and register their vehicles within the province will receive a consumption coupon of 3,000-6,000 yuan per car, based on the purchase amount of each car; individual consumers who purchase fuel-powered passenger cars (excluding second-hand cars) within the province and register their vehicles will receive a consumption coupon of 2,000-5,000 yuan per car, based on the purchase amount of each car. For individual consumers who scrap old cars and purchase new cars within the province (excluding second-hand cars), an additional 1,000 yuan consumption coupon will be granted for each vehicle, based on the aforementioned standards.
- During the event, an estimated 500 million yuan will be invested in consumption coupons, and 150,000 automobile consumption coupons will be issued. From the coverage perspective, this issuance of automobile consumption coupons will be conducted synchronously throughout the province, and urban and rural residents in 16 cities can apply as needed. From the beneficiary perspective, all individual consumers who purchase new energy passenger cars, fuel-powered passenger cars (excluding second-hand cars) within the province, and register their vehicles within the province are eligible to apply for different types of automobile consumption coupons, and enjoy different levels of consumption subsidies according to the policy.
On May 20th, Changchun City issued the “2022 Automobile Consumption Subsidy Announcement”. The following is an excerpt:
Finally
On May 23rd, the State Council mentioned in a standing meeting that 60 billion yuan of the purchase tax for some passenger vehicles will be reduced in stages! The policy’s strength far exceeded expectations!
With many favorable policies being introduced by the local and central governments, do you think the automotive market’s spring has arrived?
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.