Changchun, Ningbo offer subsidies for car purchases

Shanghai (Gasgoo)- Two more cities in China joined the string of local governments that offer subsidies to boost car consumption, which is depressed by the COVID-19 spread.

Changchun, the capital of Jilin province, determined to subsidize consumers’ new car shopping with up to RMB4,000 per car. According to a statement issued by Changchun Municipal Commerce Bureau, a consumer who buys a car and gets the license plate in Changchun will be offered subsidy worth 3% of the car's price. 

(Photo source: FAW Group's WeChat account)

To encourage automobile replacement, a new car buyer will be given subsidy of up to RMB5,000 if he could submit the invoices or receipts of old car sales, or valid documents proving the used car scrapping and deregistration.

If a consumer purchased five or more new vehicles at one go (each vehicle should be priced RMB20,000 at least), he would be granted subsidy of up to RMB6,000 per car.

Those policies, effective before July 1, 2020, cannot be used simultaneously.

An official at the Changchun Municipal Commerce Bureau said the government attempts to drive the car sales growth by holding motor shows and encouraging 4S shops to offer more sales promotions. Besides, it will make greater efforts to overhaul the stores focusing on dismantling scrapped cars and further regulate the operation and sale of used car market.

Ningbo, a coastal city of Zhejiang province, also rolled out relevant policies to entice people into buying more cars. According to a document exposed by the Information Office of Ningbo Municipal Government, a consumer who purchases PVs produced and sold by local firms before Sept. 30, and get vehicles registered in Ningbo, will enjoy a price cut of RMB5,000 per car. The number of the subsidized PVs should not exceed 6,000 units per automaker.