China allocates 6.44 billion yuan in subsidies for car trade-ins

China's Ministry of Finance announced that 6.44 billion yuan will be set aside to subsidize car trade-ins.

China's Ministry of Finance announced on its website on Friday that it has issued 6.44 billion yuan of financial discount and bonus funds for 2024, which will be used to advance the central financial subsidy funds for the replacement of old cars this year.

In March this year, The State Council of China issued the "Action Plan to promote large-scale equipment renewal and consumer goods for new", proposing to increase policy support to promote automobile echelon consumption and renewal consumption, and will organize the national automobile trade-in promotion activities, encourage automobile production enterprises and sales enterprises to carry out promotional activities, and guide the orderly competition in the industry.

China's Ministry of Commerce and 14 other departments issued the "Action Plan to promote the exchange of old consumer goods for new products" on April 12, proposing to give fixed subsidies to consumers who scrap high-emission passenger cars or qualified new energy passenger cars, and purchase energy-saving requirements or new energy vehicles, and financial institutions can independently determine the down payment ratio of self-use auto loans.

China's Ministry of Commerce, Ministry of Finance and other seven departments subsequently issued the "Rules for the implementation of the subsidy for old cars for new cars" on April 26, clarifying the subsidy policy for old cars for new cars, referring to consumers who scrap old cars that meet the requirements and buy new cars, can receive a subsidy of up to 10,000 yuan.