Car "new trade" subsidy standard will be raised


The third punch in the stimulating of the auto market is that the trade-in does not hit the target as scheduled. The reporter learned from the China Automobile Dealership Association yesterday that the state has realized that the subsidies for vehicles traded in exchange for new ones are too low and that procedures are cumbersome, and that they are studying and adjusting programs to increase their attractiveness.

According to Wang Du, deputy secretary-general of the China Automobile Dealers Association, the association is working on the adjustment of vehicles for trade-in. The relevant national authorities may announce new plans next month. Wang Du said that judging from the implementation of the old-for-new vehicle replacement for several months, there are problems such as low subsidy, lack of attractiveness, high used car prices affecting trade-in, new procedures, and other issues. “The relevant state departments have also realized these problems, so Ready to adjust in time." It is understood that after the adjustment, the subsidy standard is expected to be greatly improved.

From the beginning of September, Guangdong officially started the car trade-in, reporters learned from the market, the current situation is indeed relatively cool. According to the person in charge of the Guangdong Province Waste Disposal Automobile Recycling Company, the scrapping allowance standard of RMB 3,000 to RMB 6,000 per vehicle is not attractive to the owner of the vehicle. “The scrapped old car is not as good as a used car.” The scrapped companies in Shantou, Yunfu and other places also reflected that the subsidy funds had not been put in place in time and affected the trade-in between old and new. In addition, "how to judge whether a car belongs to a yellow-labeled vehicle is also a vague issue."

Experts in the automotive industry also believe that the trade-in for new vehicles will mainly stimulate the commercial vehicle market, but this stimulatory effect will not be as sharp as the vehicle purchase tax is half as good as the passenger car market. The reason is that commercial vehicles are the means of production. Consumers must buy them. If they do not buy, they will not buy even if they have preferential policies. Consumer elasticity will not be as large as low-emission cars.

It is understood that Shenzhen has begun to raise the standard of subsidies for car replacement, and the maximum subsidy will be raised to 12,000 yuan. The Shenzhen Automobile Dealers Chamber of Commerce has done market research, only when the trade-in replacement standard is increased to 20,000 yuan, it will attract the owner to take the initiative to scrap. However, judging from the current situation, it will be difficult for the subsidies in various regions to increase to this extent.

The implementation time of the automobile trade-in policy is from June 1 this year to May 31 next year.


View related topics: "new trade-in" stimulates the development of commercial vehicle market


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