The National Development and Reform Commission and the Ministry of Finance of China issued the Measures to Enhance Support for Large-Scale Equipment Trade-in and Consumer Goods Trade-in on July 25, according to which about Yuan 300 billion ultra-long-term special government bond funds will be used to promote the trade-in of large-scale equipment and consumer goods, including electric vehicles (EVs).
For EVs, following the Implementation Rules for Car Trade-in Subsidies, the trade-in subsidies for newly purchased EVs that are compliant with Catalog of EV Models Applicable of Vehicle Purchase Tax Exemption, or fuel-powered passenger vehicles with a displacement of 2.0 liters and below will be lifted by Yuan 10,000 and Yuan 8,000 respectively to Yuan 20,000 and Yuan 15,000 in total, should the individual vehicle owner scrap the fuel-powered passenger cars with GB III emission standards or below, or EVs registered before April 30, 2018 (inclusive).
The Measures also mentioned the subsidy standards for electric buses and power battery renewals. That is, for electric buses and power batteries that are 8 years old or above, an average subsidy of Yuan 60,000 per vehicle will be provided.
Written by Aggie Hu, huchenying@mysteel.com