Guangdong releases policies to spur car sales

Shanghai (Gasgoo)- China's Guangdong province has released a host of measures to help boost car demands as part of its economic stimulus package.

A car buyer could receive a subsidy of 3,000 yuan-10,000 yuan ($450-$1,500) per car if he scraps or transfers an old car registered in Guangdong, and also buys a new vehicle included in the province's trade-in campaign, according to a notice posted on June 1 on Guangdong provincial government's official website.

In addition, to boost the consumption of new energy vehicles (“NEVs”), individual buyers could be granted cash incentives of 8,000 yuan ($1,200) for each trade-in of oil-fueled vehicles for NEVs before June 30 this year.

AION Y; photo credit: GAC AION

As part of the measures on improving car usage management, both Guangzhou and Shenzhen will increase quotas of car license plates, and all cities of the province are not allowed to release new policies on automobile purchase restriction.

The document also states that the supporting policy on the reduction of purchase tax for passenger vehicles with a certain displacement will be fully implemented in Guangdong province.

Notably, China's Ministry of Finance and State Taxation Administration said on Tuesday that the purchase tax for cars priced at no more than 300,000 yuan ($45,000) and with 2.0-liter or smaller engines would be halved. The tax cut will be applicable for purchases from June 1, 2022 through the end of the year.