China's Automobile Trade-in Program Update
TapTechNews, June 26th. The Ministry of Commerce released data on June 25th showing that since the implementation plan for promoting the trade-in of consumer goods was issued in March, as of 12 noon on June 25th, the information platform for the trade-in of automobiles of the Ministry of Commerce has received 113,000 subsidy applications for vehicle scrapping and renewal, and the number of newly added subsidy applications in the recent week has exceeded 36,000, showing an accelerating growth trend.
In May this year, the national retail sales of automobiles was 2.271 million units, an increase of 8.7% year-on-year, among which the retail sales of new energy passenger cars increased by 38.5% year-on-year. The second-hand car transaction volume was 1.585 million units, an increase of 5.9% year-on-year. The recycling volume of scrapped automobiles was 523,000 units, an increase of 55.6% year-on-year.
According to previous reports by TapTechNews, the 7 departments including the Ministry of Commerce and the Ministry of Finance issued the Detailed Rules for the Implementation of Automobile Trade-in Subsidy on April 24th this year. From the date of the issuance of this rule to December 31st, 2024, for individual consumers to scrap fuel passenger cars with national emission standards of Phase III and below or new energy passenger cars registered before April 30th, 2018 (including the same day, the following is the same), and purchase new energy passenger cars included in the Directory of New Energy Automobiles for Reduction or Exemption of Vehicle Purchase Tax of the Ministry of Industry and Information Technology or fuel passenger cars with a displacement of 2.0 liters and below, a one-time fixed subsidy will be given.
Among them, for those who scrap the above two types of old cars and purchase new energy passenger cars, a subsidy of 10,000 US dollars will be given; for those who scrap fuel passenger cars with national emission standards of Phase III and below and purchase fuel passenger cars with a displacement of 2.0 liters and below, a subsidy of 7,000 US dollars.
According to the Notice on the Assignment of the Central Financial Pre-allocation Funds Budget for Automobile Trade-in Subsidy in 2024 of the Ministry of Finance, the total annual fund amount for the automobile trade-in subsidy is 11.19775 billion US dollars. Among them, the central funds are 6.44004 billion US dollars, and the local funds are 4.75771 billion US dollars.
In terms of performance indicators, the annual target recycling volume of scrapped automobiles is 3.78 million units. The information of new energy vehicles applying for subsidy is consistent with the Directory of New Energy Automobiles for Reduction or Exemption of Vehicle Purchase Tax.
Individual consumers who intend to apply for the subsidy funds for automobile trade-in should, by January 10th, 2025, log in to the national automobile circulation information management system website or the Automobile Trade-in mini-program, fill in personal identity information, and submit the subsidy application. Applicants should prepare the following materials:
Applicant's identity information, and need to upload photos of the front and back of the ID card.
Applicant's bank account information.
Original photos or scans of the Scrapped Motor Vehicle Recycling Certificate and the Motor Vehicle Cancellation Certificate.
Original photos or scans of the Uniform Invoice for the Sale of Motor Vehicles and the Motor Vehicle Registration Certificate of the new car.