China Allocates 644 Million Yuan for Auto Trade-in Subsidies in 2024
TapTechNews, June 3rd. The Ministry of Finance has recently allocated 6.44 billion yuan in financial discount and award subsidies for 2024, which is used for the pre-allocation of central financial subsidy funds for the automobile trade-in in 2024.
TapTechNews learned from the Ministry of Finance documents that among the pre-allocated funds, Shandong, Guangdong, and Hebei rank the top three, reaching 673 million yuan, 615 million yuan, and 429 million yuan respectively; the pre-allocated funds in Beijing are 74.61 million yuan, and in Shanghai are 90.81 million yuan.
The document mentions that the overall goal of this subsidy is to support the scrapping and renewal of old vehicles that meet the subsidy policy requirements by improving technical, energy consumption, emissions and other standards, and to further expand automobile consumption.
The document's target requires that the annual vehicle scrap recovery volume reaches 3.78 million, and the satisfaction rate of the people claiming subsidies should reach 80% or more.
Last month, seven departments including the Ministry of Commerce and the Ministry of Finance jointly issued the Detailed Rules for the Implementation of Automobile Trade-in Subsidy (hereinafter referred to as the Rules), which clearly defined the subsidy policy for automobile trade-in funds.
The Rules clearly defined the scope and standards of the subsidy. From the date of the issuance of the Rules to December 31, 2024, individual consumers who scrap fuel passenger cars with national standard III and below or new energy passenger cars registered before April 30, 2018, and purchase new passenger cars that meet the energy-saving requirements can enjoy a one-time fixed subsidy. Among them, for those who scrap the above two types of old passenger cars and purchase new energy passenger cars that meet the conditions, the subsidy is 10,000 US dollars; for those who scrap fuel passenger cars with national standard III and below and purchase fuel passenger cars with a displacement of 2.0 liters and below, the subsidy is 7,000 US dollars.
The Rules clearly defined the subsidy application process. Individual consumers who intend to apply for the automobile trade-in subsidy should, before January 10, 2025, fill in the application materials by logging into the website of the National Automobile Circulation Information Management System or the Automobile Trade-in mini-program, and the relevant materials should be obtained during the period from the date of the issuance of the Rules to December 31, 2024.