Shanghai to further promote NEV sales and second-hand market

Shanghai will add another 10,000 yuan (US$1,376) subsidy for buyers of pure electric vehicles to replace a combustion engine vehicle, according to a new action plan.

There are nine detailed measures in the action plan released on Friday to accelerate the elimination of vehicles that do not meet emissions standards and their replacement by NEVs that do, and optimize the structure of the automotive market.

For car renewal, aside from the implementation of the national regulation released this April, more targeted rules on vehicle replacement subsidies in Shanghai were issued through the plan.

According to the plan, for eligible individual users who purchase pure electric vehicles in exchange for traditional combustion engine vehicles, a one-time subsidy of 10,000 yuan will be given.

Those who meet both the national and Shanghai subsidy policies at the same time can apply for and receive both subsidies.

In addition, the action plan further standardized the city's used car industry by introducing and fostering domestic and foreign well-known used car appraisal institutions.

The release of second-hand car price assessment standards and dynamic price trends will be encouraged and supported.

The plan will also support used car appraisal organizations to cooperate with insurance companies and other enterprises to provide original equipment manufacturers with value-retention rate assessment services for new models.

Certain districts will be encouraged to set up professional export-oriented used car trading markets.

In addition, professional used car auction platforms will be introduced and given incentives of no more than 5 million yuan, according to the price credibility assessment of the auction platforms.

The same incentives can also be received by used car dealerships registered in Shanghai.

In terms of supervision and management, motor vehicle registration service stations and an online used car transfer registration business are set to be established.

To promote the popularization of new energy vehicles, the time of applying for a new energy vehicle-specific license quota has been reduced to less than five working days, with eligible used car export enterprises being supported to apply for new energy licenses for the export of used cars on demand.

The plan is expected to reduce the average age of used car transactions in Shanghai by one year by 2027.

The volume of used car transactions is also expected to reach 900,000 units, a 50 percent increase from 2023. Exports of used cars will hopefully reach 15,000 units, with the volume of end-of-life car recycling reaching 50,000 units, double that of 2023, according to government officials.