Beijing offers cash subsidies to spur demand for new energy cars

By GEORGE WONG | 27 June 2022

BEIJING: China’s capital city is offering subsidies for purchases of new-energy vehicles to replace old cars, the latest attempt by local authorities to boost consumption in a slowing economy.

The financial aid provided by the city of Beijing ranges from 8,000 yuan to 10,000 yuan (up to RM6,578) for qualified buyers who scrap or resell cars owned for more than a year, among other conditions, the local commerce bureau said in a statement Sunday.

The capital city’s move follows similar measures announced by Shanghai late last month that also involved raising a cap on car ownership and cutting a purchase tax for some passenger vehicles.

Passenger vehicle sales in China slid 17% in May from a year earlier, and not a single new car was sold in Shanghai in April as the virus gripped the city.

China’s central government is considering extending tax exemptions on new-energy car purchases in a bid to boost an auto sector battered by strict Covid lockdowns, state television reported Wednesday, citing a Cabinet meeting chaired by Premier Li Keqiang.