Commerce Ministry Discloses Surge in Vehicle Scrapping and Renewal Subsidy Applications
TapTechNews Jun 6th. The Ministry of Commerce held a regular press conference today. He Yadong, the spokesperson of the Ministry of Commerce, disclosed that as of before the press conference on that day, the number of applications for subsidy for vehicle scrapping and renewal has exceeded 40,000, showing an accelerating growth trend.
He Yadong introduced that on March 27th, the 14 departments including the Ministry of Commerce jointly issued the Action Plan for Promoting the Replacement of Consumer Goods with Old Ones, and on April 26th, they released the Implementation Rules for Vehicle Replacement with Old Ones Subsidies in conjunction with departments such as the Ministry of Finance. After the relevant documents were released, all the work has progressed smoothly with a good start, and the policy effect has gradually emerged.
Specifically, on April 27th, the information platform for vehicle replacement with old ones of the Ministry of Commerce received the first application for subsidy for vehicle scrapping and renewal in the country, and it took 25 days for the number of applications to exceed 10,000; from the 10,000th application to the 20,000th application, it took 7 days; and to the 30,000th application, it only took 4 days.
From the sales of products such as vehicles and household appliances, in May, the retail volume of passenger vehicles in the whole country was approximately 1.685 million, with a month-on-month growth of approximately 10%, among which the retail volume of new energy vehicles was approximately 790,000, accounting for 47% of the overall retail volume of passenger vehicles; the recycling volume of scrapped motor vehicles was 577,000, with a year-on-year growth of 48.9% and a month-on-month growth of 16.2%. In the first five months, the sales of household appliances replacement with old ones on major e-commerce platforms increased by 81.8% year-on-year.
According to the TapTechNews report previously, the 7 departments including the Ministry of Commerce and the Ministry of Finance issued the Implementation Rules for Vehicle Replacement with Old Ones Subsidies in April this year. From the date of issuance of this rule to December 31, 2024, for individual consumers who scrap fuel passenger vehicles with national standards Ⅲ and below or new energy passenger vehicles registered before April 30, 2018 (including the same day, the same below), and purchase new energy passenger vehicles included in the Directory of New Energy Automobiles for Reduction and Exemption of Vehicle Purchase Tax of the Ministry of Industry and Information Technology or fuel passenger vehicles with a displacement of 2.0 liters and below, a one-time fixed subsidy is given.
Among them, for those who scrap the above two types of old vehicles and purchase new energy passenger vehicles, the subsidy is $10,000; for those who scrap fuel passenger vehicles with national standards Ⅲ and below and purchase fuel passenger vehicles with a displacement of 2.0 liters and below, the subsidy is $7,000 (about 49000 yuan).