The seven departments jointly issued the detailed rules for the implementation of the car trade-in subsidy

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China Research Network

The Ministry of Commerce, the Ministry of Finance and other seven departments jointly issued the "Detailed Rules for the Implementation of Automobile Trade-in Subsidy" for the majority of consumers to provide a clear subsidy policy for automobile trade-in funds. The policy aims to encourage individual consumers to scrap old vehicles and purchase new passenger cars that meet energy-saving requirements, so as to promote the green development of the automobile market and energy conservation and emission reduction.

According to the Detailed Rules, from the date of issuance to December 31, 2024, 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, and purchase new vehicles, can enjoy a one-time fixed subsidy. The specific criteria for the subsidy are as follows:

A subsidy of 10,000 yuan will be given to consumers who scrap the above two types of old passenger cars and purchase eligible new energy passenger vehicles. This policy aims to vigorously promote the popularization of new energy vehicles and reduce the use of traditional fuel vehicles, thereby reducing environmental pollution.

A subsidy of 7,000 yuan will be given to consumers who scrap fuel passenger cars with emission standards of China III and below and purchase fuel passenger cars with an emission of 2.0 liters and below. This policy encourages consumers to buy more fuel-efficient passenger vehicles, which helps to reduce fuel consumption and reduce tailpipe emissions.

In addition, the Detailed Rules also clarify the subsidy application process and related requirements to ensure the fair, just and effective implementation of the subsidy policy. Individual consumers need to apply through designated channels in accordance with the prescribed process and time node, and provide relevant supporting materials. The relevant departments will conduct a review in accordance with their functions and responsibilities to ensure that the subsidy funds can be accurately and timely distributed to eligible consumers.

In general, the introduction of this policy is of great significance for promoting the green development of the automobile market and promoting energy conservation and emission reduction. At the same time, it also provides a good opportunity for consumers to change their cars, not only to enjoy the preferential policies brought by the policy, but also to buy more environmentally friendly and energy-saving new cars.

According to the analysis of the China Research Industry Research Institute:

In the face of the situation that there are many brands of recycling vehicles and miscellaneous models, it is impossible to implement unified and effective dismantling and recycling specifications. Related enterprises are faced with problems such as low added value of products, high personnel costs and high tax burden, coupled with cumbersome vehicle scrapping procedures and competition in the price of car recycling enterprises in the second-hand car market, so that many scrapped automobile dismantling enterprises are in a state of financial loss.

On February 9, 2021, the General Office of the Ministry of Commerce issued a notice on the guidelines for promoting automobile consumption in the commercial field and some local experience and practices. The notice proposes to improve the recycling system of scrapped motor vehicles.

Standardize and orderly carry out the qualification certification of scrapped motor vehicle recycling and dismantling enterprises, and investigate and deal with illegal recycling and dismantling activities in accordance with the law; Support recycling and dismantling enterprises to enter industrial parks or renewable resource utilization parks, and guide enterprises to develop and use online and offline efficient car collection models;

Encourage cross-regional recycling and dismantling, and explore the construction of a number of regional scrapped motor vehicle recycling industrial parks. Improve the recycling and dismantling capacity of scrapped new energy vehicles, and gradually increase the number of enterprises with capabilities by making full use of existing funding channels to support the transformation and upgrading of enterprises.

In the past decade, the proportion of car recycling and dismantling to the number of write-offs has also increased from 17.1% to 47.8%, reflecting the continuous improvement of industry standardization. Affected by the epidemic in 2020, the overall write-off of automobiles will decrease, and the recycling and dismantling rate will be as high as 63.8%.

According to the statistics of the Ministry of Public Security, in 2021, nearly 2.5 million scrapped vehicles will be recycled and dismantled in mainland China, a year-on-year increase of 20.7%, and a compound growth rate of 9.4% in the past five years, maintaining a high growth trend.

As of the end of November 2022, the number of motor vehicles in the country reached 415 million, of which 318 million were automobiles; There are more than 500 million motor vehicle drivers, of which 463 million are car drivers. At present, the total number of motor vehicles and drivers ranks first in the world.

The increasing number of automobiles means that the problems of traffic safety and environmental pollution caused by scrapped automobiles will become increasingly severe, and it is urgent to vigorously promote the development of the scrapped automobile recycling industry.

The reasonable recycling and reuse of scrapped vehicles is not only conducive to ensuring road traffic safety, reducing environmental pollution, and alleviating resource tension, but also reducing the cost of automobile manufacturers and increasing operating benefits to varying degrees. It can be seen that the scrapped automobile recycling industry has huge development potential.

Scrapped car recycling is a huge market, but after years of development of the scrapped car recycling industry, the profitability of consumer recycling and dismantling enterprises is low, and consumers' awareness of taking the initiative to regulate scrapped vehicles still needs to be improved.

To this end, the State Council reviewed and approved the "Scrapped Motor Vehicle Recycling Management Measures (Revised Draft)", and the relevant policies and their supporting "Technical Specifications for Scrapped Automobile Recycling and Dismantling Enterprises" and "Detailed Rules for the Implementation of the Administrative Measures for Scrapped Automobile Recycling" are expected to be issued after the official "Measures" are issued and implemented. In the new policy environment, how can end-of-life automobile recycling and dismantling enterprises self-regulate and improve to meet the requirements of new laws, regulations and industrial policies?

In the new policy environment, scrapped automobile recycling and dismantling enterprises standardize the dismantling process through management and technological reform and upgrading, improve the safety and environmental protection level of enterprises and their own competitive advantages, so as to achieve their own long-term healthy development. At the same time, we should explore the incentive system for scrapped automobile recycling, improve consumers' enthusiasm for recycling and the recycling rate of scrapped vehicles, so as to promote the orderly development of the scrapped automobile recycling industry.

If you want to know more about the detailed analysis of the scrapped automobile recycling and dismantling industry, you can click to view the research report of Zhongyan Puhua

According to the development trajectory and years of practical experience of the scrapped automobile recycling and dismantling industry, the report analyzes the internal and external environment, industry development status, industrial chain development status, market supply and demand, competition pattern, benchmarking enterprises, development trends, opportunity risks, development strategies and investment suggestions of China's scrapped automobile recycling and dismantling industry, and focuses on the opportunities and challenges that the scrapped automobile recycling and dismantling industry in mainland China will face, and makes prudent analysis and prediction of the future development trend and prospects of the scrapped automobile recycling and dismantling industry.

Pay attention to the headline number "China Research Institute of Puhua Research Institute", reply to "free report" by private message, you can get a free report, come and get it quickly!