Shanghai Unveils New Action Plan to Boost Automobile Update and Consumption

TapTechNews July 11th news, according to the information of Shanghai Commerce, by the end of 2023, the number of cars owned in Shanghai has exceeded 5 million, and the Shanghai Action Plan for Accelerating Automobile Renewal and Consumption (2024-2027) (hereinafter referred to as the Action Plan) was introduced first.

The Action Plan clearly states that by 2027, the average age of used cars traded in this city will be reduced by 1 year. The number of used car transactions will reach 900,000, an increase of 50% compared to 2023; the export volume of used cars will reach 15,000, doubling compared to 2023; the recycling volume of end-of-life vehicles will reach 50,000, doubling compared to 2023.

TapTechNews noticed that in April this year, the Shanghai Municipal Development and Reform Commission and the Municipal Finance Bureau have already issued the Detailed Rules for the Implementation of the Shanghai Subsidy for Promoting Automobile Consumption, and the currently launched Shanghai Action Plan for Accelerating Automobile Renewal and Consumption (2024-2027) can be regarded as a further supplement.

The Action Plan puts forward 9 tasks and measures:

Implement the national policy of replacing cars with old ones

In 2024, in accordance with the unified deployment of the national implementation of replacing cars with old ones, for 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 eligible new energy passenger cars or fuel passenger cars, 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, the subsidy is 10,000 yuan; for those who scrap fuel passenger cars with national standard III and below and purchase 2.0-liter and below fuel passenger cars, the subsidy is 7,000 yuan.

Implement the city's policy of replacing cars with subsidies

In 2024, the implementation details of the city's new round of replacing cars with old ones will be implemented. For eligible individual users who replace old cars with new national standard VI b fuel passenger cars through trade-in, a one-time car purchase subsidy will be given to individual users. Among them, if the emission standard of the old car is national standard IV and below, the subsidy is 4,000 yuan; if the emission standard of the old car is national standard V, the subsidy is 2,800 yuan. For eligible individual users who replace old cars with pure electric passenger cars through trade-in, a one-time 10,000-yuan car purchase subsidy will be given to individual users. For car owners who meet both national policies and local policies, support is provided to apply for and enjoy relevant subsidies simultaneously.

Encourage the pilot of group value-preserving leasing business

Support car rental enterprises to jointly with vehicle manufacturers, used car dealers, insurance companies, used car appraisal and evaluation institutions, etc., to design exclusive products with a leasing period of 2 to 3 years for car group leasing, covering a package of sales services such as car selection, regular leasing, and value-preserving renewal.

Accelerate the elimination and renewal of old and outdated cars

Strictly implement the mandatory retirement standards for motor vehicles and vehicle safety and environmental protection inspection standards, and eliminate old cars that meet the mandatory retirement stan dards in accordance with laws and regulations. Accelerate the introduction and implementation of subsidy policies for the elimination and renewal of national standard IV diesel vehicles and national standard II non-road mobile machinery. Promote the accelerated renewal of巡游 taxis according to the driving conditions.

Encourage the development of used car dealership business

For used car dealership registered enterprises in this city, when the annual sales volume reaches more than 3,000 vehicles, a reward of no more than 5 million yuan will be given. Every year, a performance evaluation of the policy implementation situation will be carried out, and the research and revision of a new round of policies will be studied.

Encourage vehicle manufacturers to carry out the service of taking in old cars and replacing them with new ones

Encourage vehicle manufacturers to provide a full-chain one-stop comprehensive service such as new car production, vehicle sales and leasing, and used car refurbishment. Support vehicle manufacturers to introduce preferential measures for taking in old cars and replacing them with new ones, and carry out the service of taking in old cars and replacing them with new ones in cooperation with used car dealers for vehicle sales or leasing. Set up comprehensive service points in vehicle factories to provide services such as license plate registration and inspection.

Improve the used car pricing and evaluation system

Cultivate well-known domestic and foreign used car appraisal and evaluation institutions, support the release of used car price evaluation standards and dynamic price trend information. Support used car appraisal and evaluation institutions to cooperate with insurance companies, etc., to provide new car models with the service of evaluating the rate of value preservation. Cultivate and introduce professional used car auction platforms, and give a reward of no more than 5 million yuan according to the price credibility evaluation situation of the auction platform. Continue to improve the informatization services such as the fair assessment and condition report of used car prices.

Promote the facilitation of used car circulation

Optimize the establishment process of used car trading markets, implement the territorial supervision system, fully implement the filing system, and establish motor vehicle registration service stations in accordance with regulations. Reduce the application cycle of new energy vehicle special license plates to within 5 working days. Promote the used car trading online signing model. Promote the handling of used car transfer registration business online.

Optimize the management process of used car exports

Implement online handling of the filing of used car export enterprises and the application for used car export licenses. Support eligible used car export enterprises to apply for new energy license plates for used car exports as needed. Support eligible districts to pilot the establishment of export-oriented used car trading professional markets.