Big news about car trade-in!

Securities Times E Company

2024-04-26 19:54Published on the official account of "Company E" under Guangdong Securities Times

The implementation rules for the car trade-in subsidy were released.

On April 26, according to the website of the Ministry of Commerce, in order to implement the decisions and arrangements of the Party Central Committee and the State Council, in accordance with the requirements of the "Notice of the Ministry of Commerce and Other 14 Departments on Printing <推动消费品以旧换新行动方案>and Distribution" (Commercial Consumption Fa [2024] No. 58), recently, the Ministry of Commerce, the Ministry of Finance and other 7 departments jointly issued the "Implementation Rules for Automobile Trade-in Subsidy" (hereinafter referred to as the "Detailed Rules"), clarifying the subsidy policy for automobile trade-in funds.

The subsidy amount is 7,000 to 10,000 yuan

The Detailed Rules clarify the scope and standards of subsidies. During the period from the date of issuance of the detailed rules to December 31, 2024, a one-time fixed subsidy will be given to individual consumers who scrap fuel passenger vehicles with emission standards of China III and below or new energy passenger vehicles registered before April 30, 2018 (including that day, the same below), and purchase new energy passenger vehicles or fuel passenger vehicles with an displacement of 2.0 liters and below that are included in the Catalogue of New Energy Vehicle Models Exempted from Vehicle Purchase Tax of the Ministry of Industry and Information Technology.

Among them, a subsidy of 10,000 yuan will be given to those who scrap the above two types of old vehicles and purchase new energy passenger vehicles, and a subsidy of 7,000 yuan will be given to those who scrap fuel passenger cars with emission standards of China III and below and purchase fuel passenger cars with a displacement of 2.0 liters and below.

In terms of the subsidy application process, individual consumers who intend to apply for the car trade-in subsidy should fill in the application materials by logging on to the website of the National Automobile Circulation Information Management System or the "Car Trade-in" mini program before January 10, 2025, and the relevant materials should be obtained between the date of issuance of the Detailed Rules and December 31, 2024.

The competent departments of commerce in various localities shall promptly summarize the information of applicants who meet the conditions for subsidies, determine the amount of subsidies, and submit applications for funds to the financial departments. According to the proposal of the fund arrangement put forward by the competent department of commerce, the local financial department shall allocate the subsidy funds to the bank account provided by the applicant in accordance with the procedures after being reviewed and approved by the local supervision bureau of the Ministry of Finance.

Clarify the management of subsidy funds

The "Detailed Rules" point out that the subsidy funds for car trade-in are shared by the central and local finances in a ratio of 6:4, and the specific sharing ratio is determined by region. Among them, the eastern provinces will be shared in a ratio of 5:5, the central provinces will be shared in a ratio of 6:4, and the western provinces will be shared in a ratio of 7:3. The provincial finance department shall take the lead in implementing the part of the local burden.

According to the number of fuel passenger vehicles with emission standards of China III and below at the end of 2023, the Ministry of Finance will allocate 70% of the subsidy funds to each province in advance to support local start-up related work. During the implementation of the policy, the central and local governments will subsidize the scrapped and updated vehicles of eligible automobiles according to the established sharing ratio according to the above-mentioned bicycle subsidy standards, and all localities will settle with consumers according to the facts.

After the end of the policy implementation period, in accordance with the principle of "more refund and less compensation", the central and local governments will carry out liquidation. The provincial-level competent departments of commerce and finance shall submit the distribution of subsidy funds to the Ministry of Commerce and the Ministry of Finance before February 10, 2025, and the Ministry of Commerce shall conduct a summary review of the distribution of subsidy funds reported by various localities, and submit proposals for the liquidation of subsidy funds in each province to the Ministry of Finance. The Ministry of Finance issues the budget based on the recommendations made by the Ministry of Commerce.

Many places across the country have launched trade-in policies

It is worth noting that recently, the trade-in policy for cars in many cities across the country has been released one after another. Taking Shanghai as an example, Shanghai recently released a new round of 10,000 yuan new energy vehicle replacement subsidy policy. According to the "Implementation Rules for Promoting Automobile Consumption Subsidies in Shanghai" issued by the Shanghai Municipal Development and Reform Commission and the Municipal Bureau of Finance, from January 1, 2024 to December 31, 2024 (the following dates are inclusive), if individual users purchase new pure electric passenger cars, the nature of registration and use is non-operational, and the non-commercial passenger cars registered in the city under their own name are scrapped or transferred (excluding change of registration) within the specified period, the city will give individual users a one-time car purchase subsidy of 10,000 yuan.

In addition, Chongqing provides a subsidy of 2,000 yuan to 3,000 yuan for those who meet the subsidy conditions, with a total policy fund scale of 20 million yuan. Ningxia launched the trade-in of consumer goods such as automobiles to promote consumption, and Yinchuan, Wuzhong, Shizuishan and other cities will provide a new car subsidy of up to 7,000 yuan. Nanjing, Jiangsu Province will issue a subsidy of 100 million yuan for automobile consumption from April 15 to June 30, and a subsidy of 1,000 yuan per vehicle can be added on top of the new car subsidy.

Some institutions pointed out that the sales volume of the domestic automobile market will still increase by 4% this year, and the increase mainly comes from the replacement of scrapped models. Measured by a 15-year scrapping cycle, China's auto market grew rapidly from 2008 to 2010, with annual passenger car sales soaring to 12 million units. According to estimates, the market demand brought by the scrapping and replacement of this batch of old cars will reach 8.2 million.

Cui Dongshu, Secretary-General of the Passenger Car Association, pointed out that the trade-in and scrapping of automobiles are important growth drivers for the auto market. In the future, with the growth of exports, the diversified exit mode of scrapping and export transfer will be realized, so that the level of domestic vehicle ownership will gradually increase, and the high-quality growth of automobile consumption will be realized.

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