Shanghai has introduced a series of promotional policies to encourage consumer vehicle purchases.
The policy represents a first among local governments, officials said. After vehicle sales volumes dropped in 2018 — its first decline in 28 years — the Chinese central government released promotional measures for the industry in late January.
Shanghai announced it will offer trade-in deals to help accelerate the elimination of old vehicles with poor emission standards. The city will also step up the pace to replace fuel vehicles by new energy vehicles for public service cars.
SAIC Motor, the state-owned automotive manufacturing company headquartered in Shanghai, has established an award fund of 3 billion yuan (US$ 446.9 million) to support the trade-in deals.
Owners of certain old car models can trade in their vehicle to get a 10,000 yuan discount on the purchase of new fuel vehicles and a 15,000 yuan discount on the purchase of new electric cars.