"This is equivalent to a measure to relax purchase restrictions, and my wish to change cars can finally be realized." As Mr. Du, the owner of the Shanghai car, said, the new policy has triggered a good response.

 

Individual users who have both "non-commercial minibuses" and "new energy minibuses" under their names, or individual users who have two or more "new energy minibuses" under their names, transfer or scrap their "new energy minibuses" under their names, and purchase new pure electric vehicles by replacing old ones with new ones, and support the application for special licenses... The new policy that Mr. Du referred to is the "Notice on implementing the decision to promote the replacement of old consumer goods with new ones and Further supporting the relevant work of new energy vehicles in Shanghai" issued by Shanghai on September 9 (hereinafter referred to as the "Notice"), in order to support the needs of individual users to replace old ones with new ones, the application of pure electric vehicles in Shanghai Green license provides more open support measures.

 

Shanghai New Deal launches favorable pure electric models

 

According to the provisions of the Notice, individual users with the following circumstances who purchase pure electric vehicles by replacing them with old ones will be supported to apply for special license quotas: First, individual users who have "non-commercial minibuses" and "new energy minibuses" under their names will transfer or scrap their "new energy minibuses" under their names, and purchase new pure electric vehicles by replacing them with new ones. Second, individual users who have two or more "new energy minibuses" under their name shall transfer or scrap their "new energy minibuses" under their name, and purchase new pure electric vehicles by replacing old ones with new ones.

 

However, it is also pointed out that in addition to the above two cases, consumers apply for new energy vehicle special license quotas, and in other cases, they are still implemented in accordance with the Implementation Measures of Shanghai Municipality to Encourage the purchase and use of new energy Vehicles (hereinafter referred to as the "Measures"). The implementation time of the above two measures in the Notice is from September 9 to December 31 this year.

 

"I have always wanted to change cars, but in the case of already having two cars, it is difficult to get a license before, and the" Measures "encourage those who do not have a car to buy new energy vehicles." Mr. Du introduced that in addition to pure electric vehicles in Shanghai, including plug-in hybrid and extender new energy vehicles, since January 1, 2023, they have no longer issued new energy green plates, and they are classified into the same blue plate management as fuel vehicles, which need to be auctioned. In the latest auction of the amount of personal non-commercial passenger cars in Shanghai on August 24, the auction amount was only 4,248, the number of participants reached 41036, the winning rate was only about 10%, and the lowest transaction price reached 93,900 yuan.

 

In fact, the "Implementation Plan of Shanghai on Further Strengthening Efforts to promote the replacement of old consumer goods for new work" issued on September 3 pointed out that the implementation of the national automobile scrapping renewal subsidy standard is based on the implementation Rules of the seven national departments' Automobile Replacement Subsidy. Individual consumers scrap national 3 and below emission standard fuel passenger cars or new energy passenger cars registered before April 30, 2018 (inclusive), and purchase new energy passenger cars or fuel passenger cars with 2.0 liters and below emission included in the "New energy Vehicle Model Catalogue of Vehicle Purchase Tax Reduction", The subsidy standard has been raised to 20,000 yuan for the purchase of new energy passenger cars and 15,000 yuan for the purchase of fuel passenger cars with displacement of 2.0 liters and below.

 

"But the increased subsidy is still aimed at consumers who only have one car to trade in, but the notice provides greater convenience to consumers with two cars." Mr. LAN, a Shanghai consumer, said that whether it is a new purchase or a trade-in, there are still restrictions on the purchase of pure electric vehicles in Shanghai. Since May 1, 2021, Shanghai will no longer issue free green plates for new energy vehicles less than 100,000 yuan and 4.6 meters in length. The more obvious direction of the "Notice" is to support owners to replace fuel vehicles or new energy vehicles with pure electric vehicles that meet the requirements by replacing old ones with new ones.

 

The old for new policy was updated in many places

 

In fact, not only in Shanghai, since the introduction of the car trade-in policy in April this year, all parts of the country have also launched the car trade-in policy at the local level to promote the development of car trade-in.

 

On August 16, the Ministry of Commerce, the National Development and Reform Commission, the Ministry of Industry and Information Technology and other seven departments issued the "Notice on Further doing the relevant work of replacing old cars with new cars", which further increased the measures of replacing old cars with new cars, which made it clear that the scrapped new energy passenger cars or two categories of fuel passenger cars with a displacement of 2.0 liters and below in line with the relevant provisions and purchased new energy passenger cars, subsidies of 20,000 yuan; For those who scrap national III and below emission standard fuel passenger cars and buy 2.0 liters and below emission fuel passenger cars, a subsidy of 15,000 yuan.

 

Subsequently, various places also responded. On August 16, Guangdong Province issued the "Notice on Further doing a good job in the relevant work of automobile trade-in"; On August 27, Hubei Province held a press conference to interpret Hubei's efforts to support the replacement of old consumer goods with new measures; On August 28, the Implementation Plan for Beijing's Support for equipment Renewal and the replacement of old consumer goods with new ones was officially released; On September 3, the Department of Commerce of Guangxi Autonomous Region held a media briefing on the 2024 Guangxi Power Support for consumer goods to replace old and new activities, and released the power support for cars, home appliances, and electric bicycles to replace old and new policies; On September 8, Guizhou Province started to support the replacement of old consumer goods with new ones in 2024.

 

All localities have made it clear in the policy that scrapping old cars that meet the standards and buying new energy passenger cars will increase the original subsidy from 10,000 yuan to 20,000 yuan; For those who scrap old cars that meet the standards and buy fuel passenger cars with displacement of 2.0 liters or less, the subsidy will be increased from 7,000 yuan to 15,000 yuan. Among them, for the subsidy applications that have been issued in accordance with the previous standards, all localities will make up the difference according to the standards specified in the notice.

 

As a restricted city, Shanghai issued the "Notice" this time, which revealed that the policy of replacing old and new energy pure electric vehicles has greater support.

 

The focus is different, the goal is the same

 

"The new policy launched in Shanghai is expected to boost the penetration of mid-to-high-end pure electric vehicles in the Shanghai market." Zeng Xin, a professor at the University of Science and Technology Beijing, said in an interview with China Automotive News that Shanghai's city positioning is a modern international metropolis with world influence, and cars are one of the important symbols of urban progress. Out of such consideration, Shanghai has previously shifted the focus of supporting car consumption to medium and high-end pure electric vehicles. There are also restrictions on vehicle types, including fuel vehicles. And this time is to increase the size of the old to the new goal of pure electric vehicles, also reflects the theme of promoting urban transformation and upgrading. As a result, not only can car consumption and car ownership be upgraded to medium and high-end pure electric vehicles with the help of trade-in, but also can boost the pace of urban transformation and upgrading. This method of adapting to local conditions has certain reference value at the local level.

 

"Promoting the replacement of old cars is a complete chain, and local areas are also an important part of the policy implementation." Cui Dongshu, secretary general of the Passenger Car Market Information Joint Branch of the China Automobile Circulation Association, told reporters that today, some places are increasing subsidies, and Shanghai is on the basis of subsidies to support individual users to focus on the old for new consumption of pure electric vehicles, which is of great significance for the implementation of the old for new policy. At present, although the focus of the policy to promote the replacement of old cars is not the same, the goal is the same, and they are trying to promote the replacement of old cars to better land, which is not only conducive to mobilizing the enthusiasm of all aspects, but also to promote the replacement of old cars to show greater results.

 

According to the Ministry of Commerce, as of 10 am on September 1, the Ministry of Commerce has received more than 810,000 applications for automobile scrapping renewal subsidies. From January to July this year, 3.51 million scrapped vehicles were recycled nationwide, an increase of 37.4%, especially since the implementation of the old for new policy, the growth rate of scrap renewal is accelerating, and the growth rate in May, June and July increased by 55.6%, 72.9% and 93.7% respectively.

 

"This year, the state launched the car trade-in policy, especially in the recent past, including Shanghai and many other places have introduced additional policies to promote the acceleration of the car trade-in." Liu Rui, a professor at the School of Applied Economics of Renmin University of China, told reporters that at present, in the case of sluggish real estate consumption, automobile consumption has actually become the pillar of domestic market consumption, whether from the perspective of stimulating consumption or local economy, cars to replace the old have an important role that is difficult to replace. Therefore, many places have promoted the replacement of old cars as the current key economic work to catch, but also hope to seize the "gold nine silver ten" car sales season to obtain real harvest, provide new growth points for the local economy, but also bring more benefits to consumers.

 

Originally published by China Automotive News, September 11, 2024