"This year, the expansion of the implementation of the 'two new' policy document, at the same time of our press conference, with the consent of The State Council has been officially issued." Just today, Zhao Chenxin, deputy director of the National Development and Reform Commission, disclosed weighty news.

 

On the morning of January 8, 2025, The State Council Information Office held a regular briefing on The State Council policy. Zhao Chenxin, Deputy Director of the National Development and Reform Commission, Liu Dechun, Director of the Department of Resource Conservation and Environmental Protection of the National Development and Reform Commission, Fu Jinling, Director of the Department of Economic Construction of the Ministry of Finance, Li Gang, Director of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce, Peng Lifeng, Director of the Department of Credit Market of the People's Bank of China, and Liu Hongsheng, Director of the Department of Standards and Technology Management of the General Administration of Market Regulation, introduced the "two new" policies Close the situation and answer reporters' questions.

 

National four fuel vehicles into the scope of subsidies, unified replacement and renewal of the maximum subsidy limit

 

Zhao Chenxin said that in 2025, to expand the implementation of the "two new" policy, the current overall consideration is to "increase the scale of funds, expand the scope of support, optimize the implementation mechanism, amplify the leverage effect, and further promote the" four major actions ". He then presented the main elements of the policy, which include the following sections concerning cars:

 

First, upgrade the equipment. We will continue to support the upgrading of industrial, energy-using equipment, energy and electricity, transportation, logistics and other equipment, and further include electronic information and production safety, which have great potential for upgrading, in the scope of subsidies. Special arrangements for a part of the funds, the implementation of equipment renewal loans at discounted interest, reduce the operating main equipment renewal financing costs. We will further increase subsidy standards for scrap and renewal of agricultural machinery, new energy buses and power batteries.

 

Second, we will expand the scope to support the trade-in of old consumer goods. Fuel vehicles that meet the national IV emission standards will be included in the scope of scrapping renewal subsidies, and the maximum subsidy limit for vehicle replacement and renewal will be unified and standardized across the country.

 

Third, speed up the level of recycling. We will continue to support the construction of high-level recycling projects. Standardize the trade of second-hand goods and accelerate the upgrading of the remanufacturing industry. Accelerate the implementation of the reverse billing system. Strengthen supervision and standardize the tax order of the resource recycling industry. Implement special actions to promote the application of recycled materials, and support automobile, electrical and electronic products manufacturers to increase the application proportion of recycled materials.

 

Fourth, give full play to the traction role of raising standards. By the end of 2025, the task of formulating and revising all 294 national standards in the "two new" fields will be completed on schedule. At the same time, we will strengthen the supervision of the implementation of standards and enhance the enforcement and binding force of mandatory standards.

 

Liu Dechun further revealed that "on the basis of the National three emission standards, support the national four emission standard operation truck scrap renewal", "improve the new energy city bus and power battery renewal subsidy standards, the average amount of subsidies per vehicle increased from 60,000 yuan to 80,000 yuan". Li Gang said that the Ministry of Commerce will work with relevant departments to introduce implementation rules in five areas such as automobiles as soon as possible to clarify specific subsidy standards and operating processes. For the implementation of the policy, Zhao Chenxin also said that it will severely crack down on illegal acts such as price increases and discounts after cheating.

 

The first batch of 81 billion yuan has been allocated to fully meet the needs of the New Year and Spring Festival

 

"I can definitely tell you that the total amount of funds used to support the 'two new bonds' this year has increased significantly compared to last year." Zhao Chenxin said that the specific amount of the total scale of funds supporting the "two new" this year will be announced to the society at the national "two sessions" this year. He introduced that the first batch of new funds for old consumer goods have been pre-issued this year, which can fully ensure the smooth implementation of the "two new" policy, especially the subsidy demand for the consumption demand of the people during the New Year's Day and the Spring Festival. Fu Jinling further revealed that recently, the central finance has pre-issued 81 billion yuan of funds for replacing old consumer goods with new ones in 2025 to support all localities to do a good job in the continuous implementation of policies.

 

In terms of the allocation of the "two new" funds, Fu Jinling said that in 2025, the Ministry of Finance will further optimize policy measures to make the "two new" funds play a greater role in promoting high-quality economic development.

 

First, we will further optimize the allocation of funds. On the basis of the previous relevant distribution factors, in accordance with the principle of "incentive compatibility", according to the implementation of the old consumer goods for new policies and funds in 2024, the work is tilted to the regions with better results.

 

Second, we will further increase support. We will further expand the scope of implementation and raise the standards of subsidies in some areas that require large amounts of funds and attract high public attention.

 

Third, we will further strengthen policy linkage between fiscal funds. For the equipment renewal related loan principal of qualified operating entities, on the basis of the central financial discount interest of 1.5 percentage points, extra discount interest is arranged for ultra-long-term special Treasury bond funds to further reduce the financing cost of equipment renewal of operating entities. Allow all localities to explore the linkage between subsidy policies and financial support, effectively amplify the effect of the policy of exchanging old consumer goods for new ones, and promote more high-quality durable consumer goods to enter the lives of residents.

 

Fourth, we will further optimize the process of applying for funds. The Ministry of Finance supports the Ministry of Commerce to integrate the nationwide consumer subsidy data platform, do a good job in data sharing and automatic comparison, and ensure the safe and efficient use of funds. At the same time, we will guide all localities to advance part of the funds to the corresponding payment platforms or business entities in light of the actual situation, improve the efficiency of capital settlement, and reduce the capital cushion and operating pressure of enterprises.

 

In 2024, it will drive car sales of more than 920 billion yuan

 

The press conference also reviewed the achievements of the "two new" work in 2024. Liu Hongsheng introduced the implementation and application of national standards to support the "two new" work. He said that in March 2024, seven departments including the General Administration of Market Supervision jointly issued the Action Plan for Upgrading traction Equipment and replacing old Consumer Goods with New Ones with Standards, implementing a new round of standard upgrading actions to help large-scale equipment renewal and replacing old consumer goods with new ones. By the end of 2024, 168 of the "two new" important national standards have been issued, and 39 of the 165 standards that need to be completed by 2025 have been completed ahead of schedule. Mainly involved in household appliances, furniture, automobiles and other fields.

 

According to Zhao Chenxin, more than 6.5 million vehicles will be scrapped and replaced nationwide in 2024, and the domestic market penetration rate of new energy passenger vehicles has exceeded 50% for seven consecutive months since June. The annual domestic retail sales reached 11 million. Li Gang further added that in 2024, more than 2.9 million vehicles were scrapped and updated, more than 3.7 million were replaced, and the recycling volume of scrapped vehicles reached 7.872 million, an increase of 70.7% year-on-year, driving car sales of more than 920 billion yuan. Under this influence, the people are enthusiastic about replacing the new, from January to November 2024, the retail volume of passenger vehicles reached 20.257 million, an increase of 4.7% year-on-year, and more than 6.6 million old vehicles were replaced with new energy vehicles or energy-saving vehicles, and the proportion of replacing new energy vehicles was more than 60%.

 

In 2024, the policy of exchanging old for new consumer goods has brought obvious vitality to China's auto market. The industry has been looking forward to the smooth transfer of the old for new policy in 2025, which will help to continue the good development trend of China's auto market, and can avoid large fluctuations in the market due to policy adjustments in a short time. Today's briefing by the State New Office will open the prelude to the "two new" work in 2025, bringing strong impetus to the auto market.

 

Originally published by China Automotive News, January 9, 2025