Subsidy Plan for Vehicle Replacements Officially Released
On July 14, China officially confirmed the specific subsidy program to help consumers replace vehicles on Tuesday after seeking public opinion on the plan since last month. The program was designed by the Ministry of Finance along with the cooperation of ten other ministries, including the Ministry of Commerce and the National Development and Reform Commission.
According to the program released yesterday, Consumers will receive a subsidy of between 3,000 yuan ($439) and 6,000 yuan per vehicle to replace their mid- and small-sized trucks and some types of mid-sized passenger cars. The subsidy will be no more than the purchase tax of the automobile.
Consumers can bring old vehicles to a reclaim station from June 1, 2009 to May 31,2010, and can apply for subsidies between August 10, 2009 and June 30, 2010. Subsidy will be received within 15 working days after consumers provide a confirmation note from the recycling plant and take receipts for their new automobile to the local government.
According to a forecast by China Automotive Technology and Research Center, the trade-in policy will add at least 300,000 commercial vehicles to whole-year sales.
The the program will also help to curb pollution as the petrol consumption of old vehicles is 5 to 10 percent higher than new ones.
According to officials from the Ministries of Finance and Commerce, the government will increase subsidies for auto replacements from 1 billion yuan to 5 billion yuan this year.
Auto dealers support the subsidy program and many auto manufacturers have even offered rebates to attract consumers since the program was first put up for public discussion.
Reference to China Daily.
