China's 'Action Plan for Promoting the Replacement of Consumer Goods with Old Ones' Shows Promising Results
TapTechNews August 2nd news, today the Information Office of the State Council held a series of theme news conferences on 'Promoting High-Quality Development' (Ministry of Commerce). In response to how the work effectiveness of the 'Action Plan for Promoting the Replacement of Consumer Goods with Old Ones' is, Xu Xingfeng, Director of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce, responded.
Xu Xingfeng said that as of 9 a.m. today, the Ministry of Commerce has received more than 450,000 applications for subsidies for vehicle scrapping and renewal, showing a rapid growth trend. In the first half of the year, the amount of vehicle scrapping and recycling increased by 27.6% year-on-year, and the retail sales of new energy passenger cars increased by 33.1%. In terms of home appliances, the retail sales of home appliances above the quota in the first half of the year increased by 3.1% year-on-year, which was 2.1 percentage points faster than the same period last year. In terms of home improvement and kitchen and bathroom, the retail sales of furniture above the quota increased by 2.6% year-on-year, and the policy effect is gradually emerging.
On July 25th, in accordance with the deployment of the State Council, the National Development and Reform Commission and the Ministry of Finance issued the 'Several Measures to Strengthen Support for Large-Scale Equipment Renewal and Replacement of Consumer Goods with Old Ones', and the support intensity has been greatly increased. Arranged more than a long-term special treasury bond of 150 billion yuan to support local autonomous implementation of the replacement of consumer goods with old ones. The subsidy standards have been increased from 10,000 yuan for purchasing new energy passenger cars and 7,000 yuan for purchasing fuel passenger cars to 20,000 yuan and 15,000 yuan respectively.
TapTechNews summarizes some of the measures as follows:
Improve the subsidy standard for vehicle scrapping and renewal: On the basis of the 'Detailed Rules for the Implementation of Vehicle Scrapping and Renewal Subsidies' (Commercial Consumption Letter [2024] No. 75), individual consumers scrap fuel passenger cars with national standard III and below or new energy passenger cars registered before April 30, 2018 (including that day), and purchase new energy passenger cars included in the 'Catalog of New Energy Automobiles Exempt from Vehicle Purchase Tax' or fuel passenger cars with a displacement of 2.0 liters and below, and the subsidy standard is increased to 20,000 yuan for purchasing new energy passenger cars and 15,000 yuan for purchasing 2.0-liter and below fuel passenger cars. Consumers who apply for subsidies since the date of the issuance of the 'Detailed Rules for the Implementation of Vehicle Scrapping and Renewal Subsidies' shall implement the subsidy according to the standards of this notice. Consumers who apply for subsidies according to the standards of this notice, the corresponding scrapped motor vehicles must be registered under their own names before the date of the issuance of this notice.