Subsidies doubled. If you change your car, you will get a maximum subsidy of 20,000 yuan for replacing your old car with a new one.
2024-08-27
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Written by Xiaoxiang Morning News reporter Mao Chuan
I have a true story, "Rebirth: My Old Car Has Been With Me for 15 Years", which is a personal experience. With the release of the "Notice on Further Improving the Work of Auto Trade-in" by the Ministry of Commerce and other seven departments on August 16, individual consumers who scrap their old cars and buy new ones can receive a maximum subsidy of 20,000 yuan. This story may become "Rebirth: The Second Spring of My Old Car".
The latest notice is a significant upgrade to the "Implementation Rules for Car Trade-in Subsidy" released in April. Whether it is the most intuitive doubling of subsidies, the increase in scrapping subsidy standards, or the updating and optimization of the review process, it can reflect the strength and sincerity of this new policy.
It can be said that the government has been working hard to get you to replace your old car. With such efforts, why don't you change it and keep it for the New Year?
It’s time to replace “Xiaohong” that has been with me for 15 years
My family has an old car that has been with me for 15 years. Let's call it "Xiaohong". Although I have bought new cars in the meantime, and Xiaohong has some "old car problems" from time to time, such as disordered instruments, damaged car body, peeling interior, unstable idling, and increased fuel consumption...but it still plays an extremely powerful and important role in transportation.
The reason why he has not retired or been laid off is that the second-hand value of Xiaohong drops by one or two thousand yuan every year. Now it is estimated that the car originally bought for 180,000 yuan is now estimated to be worth only three or four thousand yuan, and there is no market for it.
However, there is now new news - according to the "Notice" issued by seven departments, the subsidy standard for individual consumers who scrap old cars and buy new cars will be increased from 10,000 yuan for purchasing new energy passenger cars and 7,000 yuan for purchasing fuel passenger cars to 20,000 yuan and 15,000 yuan respectively.
Let me put it this way, if I trade in a BYD Seagull now, after deducting the subsidy, I can swipe my credit card for about 40,000 yuan and drive the new car home in this "dog days" period, use less electricity and get a longer range, without having to worry about idling in the car on hot days and not wanting to turn on the air conditioner, and I can also enjoy the smart car machine that current vehicles should have... a new chapter in car-related life begins.
The above is my personal true story. I believe there are many old car owners who have the same story as me.
Policies drive the automotive consumer market to revitalize
How will China’s consumption be defined in 2024? The two sessions at the beginning of the year have set the tone - the year of consumption promotion, and the country is vigorously promoting the replacement of old for new durable consumer goods such as home appliances and automobiles.
By the end of 2023, the number of civilian cars in China will reach 336 million. According to the data from the Ministry of Commerce, it took 25 days for the automobile trade-in information platform to receive the first application for automobile scrapping and renewal subsidies in the country and the number of applications exceeded 10,000; it took 7 days from the 10,000th to the 20,000th application; and only 4 days to the 30,000th application... As of August 23, the automobile trade-in information platform has received more than 700,000 applications for automobile scrapping and renewal subsidies. This data is still growing rapidly at a rate of tens of thousands per day. As of August 23, the total number of registered users of the automobile trade-in information platform exceeded 1.1 million.
Under the influence of policies, the domestic automobile consumer market has also begun to regain vitality.
Data shows that in May this year, the national automobile retail sales reached 2.271 million units, an increase of 8.7% year-on-year, of which the retail sales of new energy passenger vehicles increased by 38.5% year-on-year; the second-hand car transactions reached 1.585 million units, an increase of 5.9% year-on-year; and the number of scrapped vehicles recycled reached 523,000 units, an increase of 55.6% year-on-year.
In this industrial upgrade disguised as "old for new", better preferential policies met potential market demand, resulting in a phased victory for the policy.
There is a broader market space
We also need to see that the current "700,000" participating vehicles are just the tip of the iceberg of eligible vehicles. According to Bloomberg New Energy Finance analysis, when the National III emission standards for fuel passenger vehicles came into effect, China had registered more than 26 million internal combustion engine vehicles. According to data provided by the Ministry of Commerce of China, about 16 million of them are still on the road. Before April 2018, China also registered 1.2 million new energy passenger vehicles, of which less than 400,000 were no longer on the road and scrapped. This means that China has a total of about 16.8 million passenger cars eligible for the car trade-in subsidy funds.
In addition, the trade-in experience is in China, and the trade-in experience in China is in Hunan. On August 24, the Hunan Provincial Department of Commerce revealed that Hunan's experience in trade-in of consumer goods was promoted nationwide as a typical case of the Ministry of Commerce. In the first half of the year, the province's total retail sales of consumer goods increased by 5.7% year-on-year, ranking first in the country; the province's new energy vehicles and communication equipment retail sales increased by 63.5% and 33.7% year-on-year respectively.
Since the beginning of this year, Hunan has actively seized the window period of the central government's old-for-new policy, vigorously promoted the old-for-new policy for consumer goods, and stimulated potential consumption. On the basis of the central government's scrapping and renewal subsidies, Hunan immediately launched a car replacement and renewal promotion activity, providing consumer voucher subsidies to consumers who meet the replacement and renewal application conditions. By mid-July, the province had received more than 8,600 applications for scrapping and renewal subsidies and more than 23,000 applications for replacement and renewal subsidies, which cumulatively drove automobile sales of more than 5.5 billion yuan.
It is foreseeable that after increasing the efforts to replace old cars with new ones, the consumption of new energy vehicles, second-hand car transactions and the recycling of scrapped cars will be further boosted in the future. In addition to stimulating the market, these data will also have a profound impact on the transformation and upgrading of the domestic automobile industry.
The automobile industry is an important pillar industry of my country's national economy. The upgrading of the automobile industry is of great significance to the national economy, and the automobile trade-in policy is an important part of promoting the development of the industry.
Source: Xiaoxiang Morning News
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