Gasgoo Munich- On February 28, the Shenzhen Municipal Development and Reform Commission, alongside other departments, rolled out a sweeping subsidy program backed by ultra-long special treasury bonds. The initiative targets automobiles, home appliances, and digital products, with the auto sector taking center stage. The city set a clear goal: facilitating 35,000 vehicle scrappage updates and 180,000 trade-ins for the full year.
Incentives for scrapping old vehicles are substantial. Individual consumers who scrap a passenger car can receive a subsidy equal to 12% of the purchase price—capped at 20,000 yuan—when buying a new energy vehicle (NEV) listed in the tax-exemption catalog. Those opting for a fuel vehicle with a displacement of 2.0 liters or below qualify for a 10% rebate, with a ceiling of 15,000 yuan.
Trade-in updates also offer tiered support. After transferring ownership of an existing passenger vehicle, individuals buying a qualifying NEV are eligible for an 8% subsidy, topping out at 15,000 yuan. Choosing a fuel vehicle of the same displacement tier yields a 6% subsidy, capped at 13,000 yuan. All rebates apply to individual consumers purchasing compliant models.
On the financial front, the Municipal Finance Bureau is tasked with managing ultra-long special treasury funds through a dedicated account within the state treasury system. The city will coordinate these funds with municipal fiscal contributions at the state-mandated 85:15 ratio, ensuring timely disbursement while implementing monitoring and early warning systems.
There is a strict timeline for processing auto subsidies. Relevant authorities aim to complete audits and disburse funds within 45 working days. A "total cap, first-come, first-served" mechanism will be enforced to ensure the budget is used rationally.
Beyond automobiles, the scheme extends to home appliances and digital products, offering a 15% subsidy capped at 1,500 yuan and 500 yuan, respectively. The city pledged to tighten oversight, cracking down on fraud and artificial price hikes intended to game the system, while tracking implementation through daily reports and weekly scheduling.
Leveraging ultra-long special treasury funds, this policy aims to revitalize auto consumption and accelerate the adoption of green, low-carbon models. By linking these efforts with upgrades in the appliance and digital sectors, Shenzhen hopes to enhance the quality and efficiency of its consumer market throughout the year. Subsidy funds are slated to be fully disbursed by December 31, 2026.
