Shanghai, May 24 (Gasgoo.com) China's auto trade-in policy will expire at the end of this month, with vehicle sales under this 'cash for clunkers' program failing to achieve some expected results, media reported. This policy will likely be extended to the end of this year, and Shanghai has already announced this extension.
Th Chinese government started the auto trade-in policy on June 1, 2009 and extended it to May 31, 2010, providing subsidies from 5,000 yuan ($732) to 18,000 yuan to each consumer replacing their old polluting car with a clean new one. Original subsidies were from 3,000 yuan to 6,000 to each.
The trade-in subsidies policy generated 3.5 billion yuan in sales value in the first quarter of this year, up 78.2% from Q4 of 2009, with 24,000 auto buyers getting the subsidies, said Yao Jian, spokesman of the country's Ministry of Commerce.
In contrast with the U.S. government's 'cash for clunkers' program which boosted auto sales by nearly 700,000 units in one month last summer, China's auto trade-in subsidies have contributed little to the country's booming auto market, now the world's largest.
Separately, Shanghai plans to extend the auto trade-in subsidies until the end of this year. By December 31, car owners in this city can get subsidies of up to 7,500 yuan each for the "old-for-new" car trade-in. The central government may extend this policy.
