On May 24th, the Office of the People’s Government of Hubei Province issued the “Notice on Accelerating the Recovery and Boosting of Consumer Demand Measures”, which proposed several measures to encourage automobile consumption.
- Launch the “Hubei Consumption · Auto Refresh” campaign.
From June to December 2022, a special action for “scrapping old cars for new ones” will be implemented, providing subsidies to individual consumers who scrap or transfer their old cars with Hubei license plates and purchase new cars within the province. The required funds will be shared by the provincial and local governments, each covering 50%. Among them, the subsidy for scrapping old cars and purchasing new energy vehicles is 8,000 RMB/car, and for purchasing fuel vehicles is 3,000 RMB/car. The subsidy for transferring old cars and purchasing new energy vehicles is 5,000 RMB/car, and for purchasing fuel vehicles is 2,000 RMB/car. The reduction of the value-added tax for used car transactions from 2% to 0.5% is fully implemented, reducing the operating costs of used car businesses and improving the efficiency of circulation. Automobile production and sales companies are encouraged to adopt various methods to benefit consumers. - Launch the “Hubei Consumption · Automobiles to the Countryside” campaign.
Guiding rural residents to travel green, from June to December 2022, a new round of new energy vehicle promotion programs will be organized, supporting the province’s new energy vehicle models to enter the national new energy vehicle promotion list, and encouraging cities and prefectures with conditions to hold new energy vehicle promotion events. - Launch a new energy vehicle promotion campaign.
For consumers (including business units) who purchase new energy vehicles, the existing national promotion subsidies and vehicle purchase tax exemptions policy will be implemented. From June to December 2022, for the purchase of new energy vehicles by urban public transportation in the province, a subsidy of 3% of the vehicle price will be provided, and the required funds will be shared by the provincial and local government, each covering 50%. Party and government agencies and public institutions will lead by example in equipping and using new energy vehicles. Except for physical protection and special professional vehicles, the proportion of new energy vehicles purchased should not be less than 30%.
In addition, the notice also includes other measures to promote housing and home consumption, and support accommodation, catering, retail, cultural tourism, sports consumption, etc. For specific details, please visit the government’s website.
Original policy link: https://www.hubei.gov.cn/zfwj/ezbf/202205/t20220524_4142729.shtml
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.