China’s Jilin province rolls out measures to revive car sales

Shanghai (Gasgoo)- The government of China's Jilin province, where the automobile serves as its No.1 mainstay industry, has issued the detailed measures for stabilizing and stepping up local automobile consumption.

The measures are designed based on five aspects, including delaying the implementation of the China Ⅵ emission standards, encouraging NEV shopping, scrapping the old and used trucks, facilitating the transaction of pre-owned cars and increasing credit support. Those are all in line with the guiding spirit conveyed by the central government.

(Photo source: Information Office of the People's Government of Jilin Province)

Zhao Haifeng, deputy director of the Jilin Province Development and Reform Commission, said at a press conference on July 17 that Jilin will abide by the central government's decision that extends the grace period of part of the China Ⅵ emission standards for light-duty vehicles by six months. Besides, the light-duty vehicles produced and imported before July 1, 2020 are still allowed to be sold and registered this year.

He added that Jilin provincial government has released the measures to subsidize NEV purchase and has exempted the vehicle purchase tax on NEVs. In addition, more methods will be adopted to speed up the promotion and application of NEVs in urban public transport field.

(Photo source: Besturn)

To accelerate the scrapping of old and used diesel-powered trucks, local government has drawn up relevant implementation plan to conduct roadside spot checks and the random tests of vehicle registrations, so as to achieve the round-the-clock and all-around supervision of the diesel trucks’ pollutant emissions. Furthermore, the traffic restrictions or prohibitions of diesel-fuel trucks under the China Ⅲ emission standards or below will be carried out and the punishments imposed on the running of substandard vehicles will be reinforced.

Facilitating the transaction of pre-owned vehicles is adopted as one of means to drive new car sales. From May 1, 2020 to December 31, 2023, where a taxpayer engaging in the dealing of used vehicles sells a used vehicle it purchases, the VAT thereon shall be levied at a reduced rate of 0.5% instead of being levied previously at a reduced rate of 2% from 3% under the simple method, according to Zhao Haifeng.

What's more, Chongqing shall further implement the policy of comprehensively canceling the restriction on the movement of used cars. The secondhand vehicles, which are within their validity periods of the regular inspection of environmental protection and the safety inspection and meet the national emission and safety standards, are permitted to be registered.

Jilin's local authorities should make effective and flexible use of consumer finance approach. They will strengthen the support to personal consumption credit by means of as appropriate lowering the minimum down payment ratio, deferring the payment deadline and affording more modes of repayment.