Beijing offers incentives to scrap high-emission vehicles
The city authorities in Beijing, China's capital, have announced fresh policies in an attempt to boost new car sales. The scheme is primarily designed to reduce the number of high-emissions vehicles in the city by offering incentives to owners who scrap these old models or transfer their vehicles' registration to other cities. Both passenger vehicles and commercial vehicles are eligible for incentives under the programme. The exact subsidy that applies depends on the size of the vehicle. The maximum amount an owner who scraps their old model can receive is CNY10,000 (USD14,100) for a small passenger vehicle before 31 December 2020. Between 1 January and 31 December 2021, the maximum amount for the scrapping of a small passenger vehicle is reduced to CNY8,000. For those who transfer registration of a high-emission vehicle out of Beijing, up to CNY5,000 will be granted for a small passenger vehicle between 1 April and 31 December 2020. The city authorities said the term 'high-emission vehicle' refers to gasoline (petrol)-engine models registered in Beijing that meet the China 3 emission standards and 'small passenger vehicle' refers to vehicles with a body length of less than 6 metres and carrying 9 passengers or less.
Significance: The incentive programme announced by Beijing will not directly provide subsidies to consumers who purchase a new vehicle; instead, it encourages existing owners to scrap high-emission vehicles or transfer the vehicle's registration to other cities, which normally can be achieved by selling the vehicle in the second-hand vehicle market to a buyer in another city. The scheme will put relatively less strain on Beijing's traffic conditions as it does not directly relax the city's cap on new vehicle registrations. Under this scheme, most passenger vehicle models are categorised as 'small vehicles'. The subsidy of CNY10,000 for owners scrapping their old models certainly looks attractive.
Read more articles like this one. Get a free trial to AutoIntelligence Daily
- Average age of US light trucks and cars approaches 12 years
- Fuel for Thought: The COVID Recovery
- Global Auto Demand Tracker - new sales/registration numbers for June 2020
- Automotive Rapid Response Report | 8 July 2020
- Automotive COVID-19 Recovery Series
- Automotive Rapid Response Report - 17 June 2020
- COVID-19's real possible effects on the Auto and Mobility Industry
- With 50% of countries reporting, month of May numbers indicate a solid rebound for global auto demand
An Automotive Minute [S2|E28] With 2.5 months of lost output and revenue, Michael Robinet discusses North America a… https://t.co/gR7QlivyaL
Download the joint IHS Markit – CAR whitepaper: ‘Supplier Strategy Reset’ that we discussed early today at CAR MBS… https://t.co/B9NG48Tnsc