Guangzhou (JLC), June 12, 2024 – China has allocated about CNY11.20 billion (USD1.58 billion) as the 2024 annual subsidy for car trade-ins, according to a notice issued by the Ministry of Finance on May 28, as part of the country’s efforts to boost consumer spending on big-ticket items such as new energy vehicles (NEVs).
This allocation of funds will consist of CNY6.44 billion from the central government and CNY4.76 billion from local governments, the notice said.
Consumers can enjoy a subsidy of up to CNY10,000 (USD1,406) if they replace the older vehicle with an NEV, provided that certain conditions were met, according to the Implementation Rules for Car Trade-in Subsidy issued on April 24, 2024 by seven departments including the National Development and Reform Commission (NDRC) and the Ministry of Commerce.
Consumers may also benefit from cash incentives offered by different car manufacturers.
Details of China’s “cash for clunkers” plan
The government’s trade-in scheme – which will last until December 31, 2024 – aimed to phase out internal combustion engine (ICE) passenger vehicles equivalent to or below the National III standards (old emission standards broadly equivalent to Euro III), as well as NEVs registered before April 30, 2018.
To enjoy a subsidy of up to CNY10,000, a consumer is required to scrap an old passenger vehicle and buy a new one as stipulated in the Implementation Rules for Car Trade-in Subsidy. The rules are as follows:
The government also said in the latest notice that it planned to recycle 3.78 million scrapped cars in 2024.
