Changsha grants new vehicle buyers subsidy of up to RMB3,000 per car

Shanghai (Gasgoo)- Following Foshan and Guangzhou, Changsha, capital of Hunan province, has also put forward the policy to subsidize new car purchase as part of efforts to boost automobile spending amid the anti-coronavirus fight.

(Photo source: Leopaard)

From March 11 to June 30, consumers who buy from designated dealers the vehicles manufactured by such OEMs as SAIC Volkswagen's Changsha plant, Changsha BYD, GAC Mitsubishi, GAC FCA and Leopaard, and get license plates in Changsha, will enjoy subsidy worth 3% of a bar vehicle’s price—“bare vehicle” refers to a status in which the product just leaves the factory without any non-standard facilities installed—with the value of up to RMB3,000 per car, according to the Changsha City Development and Reform Commission.

The offering of the incentive came after the issuance of a state-level proposal jointly formulated in late Feb. by 23 central governmental departments such as the NDRC and the MIIT to improve the quality and expand the scale of domestic consumption.

According to the proposal, local governments of regions where automobile purchase restriction policy has been implemented are encouraged to increase the license plate quota as appropriate. Besides, to promote the scrapping and upgrading of motor vehicles, the government will move faster in introducing the rules for implementation of the Measures for the Management of End-of-Life Vehicle Recycling, and strictly enforce the technical standards of recycling and dismantling scrapped motor vehicles.

Two cities in Guangdong province proffered similar policies prior to Changsha's deed. From March to December 2020, the consumers who buy new energy vehicles will be given the combined subsidy of RMB10,000 per car, Guangzhou municipal government stated in an official file issued on March 1. In addition, the consumers who replace or scrap used cars and the locally registered auto sales companies that purchase new vehicles befitting the China Ⅵ emission standard will be granted subsidy of RMB3,000 per car.

Foshan was the earliest doer in China that announced such kind of policy after the epidemic outbreak. The consumers who buy “China Ⅵ” vehicles there would be offered subsidy of RMB2,000-5,000 per car.