Recently, the Ministry of Commerce, the Ministry of Finance, and seven other departments jointly issued the "Detailed Rules for the Implementation of the Trade-in of Automobiles," which clearly defined the subsidy policy for the trade-in of automobiles. Including the amount of application and the process, etc., so how to do it?
The first is the scope and standard of subsidies.
The new policy mentions that during the period from the issuance of the implementation rules for car trade-in to December 31, 2024, individual consumers who scrap fuel passenger cars with emission standards of China III and below or new energy passenger vehicles registered before April 30, 2018, and purchase new passenger cars that meet the energy-saving requirements can enjoy a one-time fixed subsidy. The amount of the subsidy is up to 10,000 yuan.
A subsidy of 10,000 yuan will be given to those who scrap fuel passenger vehicles with emission standards of China III and below and purchase eligible new energy passenger vehicles.
For scrapping fuel passenger cars with emission standards of China III and below and purchasing fuel passenger cars with displacement of 2.0L and below, a subsidy of 7,000 yuan will be provided.
It is worth noting that there are specific criteria for the passenger cars mentioned in the subsidy. Specifically, it refers to small and micro passenger vehicles registered with the public security traffic management department.
Fuel vehicles with emission standards of China III and below refer to fuel vehicles registered before June 30, 2011, diesel vehicles and other fuel types registered before June 30, 2013.
The trade-in policy can enjoy subsidies for the purchase of new energy passenger vehicles and fuel passenger vehicles, and has a wide coverage, basically 10-year-old cars can be enjoyed after the purchase of new cars after scrapping.
In the trade-in policy, the scope of subsidies includes new energy vehicles and fuel vehicles, and the subsidies for new energy vehicles are higher than those for fuel vehicles, which shows that the policy promotes the development of new energy vehicles and fuel vehicles in both directions, further guides and promotes low-carbon consumption, stabilizes fuel vehicle consumption, and better promotes industrial transition and upgrading.
Secondly, in terms of the application process, the new regulations mention that the subsidy application can be made through online application. There are two ways to do this:
- Go to the website of the National Automobile Circulation Information Management System "Car Trade-in Topic" and submit relevant materials (ID card, card number, recycling certificate and cancellation certificate of scrapped cars, invoices for the purchase of new cars, etc.)
- Search for "Car Trade-in Mini Program" on the homepage of Alipay, WeChat, and UnionPay and submit relevant materials to apply.
The online application method can be operated on both the computer and mobile phones, which not only improves the convenience of the review, but also speeds up the time for consumers to apply for subsidies, which is much more convenient.
Judging from the details of the trade-in policy and related subsidies, the policy has boosted the automobile consumer market. Nowadays, the main driving force of economic growth lies in consumption, and the automobile industry is huge in scale and has a strong driving effect.
In addition, there are still a large number of old cars with high energy consumption and long service life. Trade-in will help stimulate consumption potential, expand market demand, and enhance the competitiveness of the automotive industry.
By the end of 2023, there will be about 13.708 million fuel passenger vehicles with emission standards of China III and below, about 837,000 new energy passenger vehicles with an age of more than 6 years, and about 14.545 million eligible old vehicles.
The industry expects that this round of trade-in policy can bring an incremental scale of 100-2 million units to the domestic auto market. Among them, new energy passenger vehicles accounted for 4 percent, and fuel passenger vehicles accounted for 6 percent. According to the average selling price of 150,000 yuan for new cars, these old scrapped vehicles can bring 150 billion to 300 billion yuan of consumption.
For the circulation of the second-hand car market, the trade-in policy can also play a greater role. Assuming that 30% of old cars flow into the second-hand car market, based on the average average price of 25,000 used cars, the second-hand car market is expected to bring 100 billion yuan in consumption scale.
The Federation of Passenger Cars predicts that the retail market of narrow passenger cars in April will be about 1.60 million units, down 1.5% year-on-year and 5.3% month-on-month, and the retail sales of new energy vehicles will be about 720,000 units, a year-on-year increase of 37.1%, with a penetration rate of 45%.
With the introduction of the trade-in policy, consumers' demand for car purchases will be further released, and the fuel vehicle market is expected to recover. Sales of new energy vehicles are expected to grow further.
At the consumer level, with the trade-in subsidy policy, you can get subsidies for buying new cars after disposing of old models, which directly reduces the cost of buying cars and makes it cheaper for consumers to buy cars.
In addition, after the car experience of various manufacturers has been upgraded, it is now possible to buy a car with a higher quality-price ratio. For example, under the same budget, 10 years ago, you could only buy a car that basically met the needs of transportation, but now, you can basically buy a car with both travel and quality.
It can be said that the trade-in has injected a boost into the auto market, boosted market expectations and confidence, and also brought about an upgrade in the consumer experience. Behind it is the upgrading of the supply side of automobiles and the increase in quality and efficiency of the industrial chain. It is believed that with the implementation of trade-in, the automobile market can once again rejuvenate and impetus.
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