Subsidy for car trade-ins from China
The Chinese Ministry of Commerce announced that a subsidy of 10 thousand yuan ($1,379) per person will be given to scrap old vehicles and replace them with new ones by the end of the year, in order to increase demand in the Chinese automobile market, the world’s largest automobile market.
In a joint statement made by the Chinese Ministry of Commerce with six other institutions, including the Ministry of Finance, it was stated that anyone who replaces an old gasoline vehicle with a new one will be entitled to receive a subsidy of 7 thousand yuan, while anyone who replaces an old vehicle with a new electric vehicle will receive 10 thousand yuan.
The ministry did not disclose the total subsidy amount.
The central government will contribute 60 percent of auto trade-in subsidies, while local governments will contribute the remaining 40 percent, with rates varying by region.