China’s financial hub of Shanghai will extend the subsidies for purchases of new energy vehicles (NEVs) in a move to promote car consumption, according to an action plan to stabilize economic growth released by the municipal government on Sunday.
Individual consumers who scrap or transfer their locally-registered vehicles and purchase pure electric vehicles by June 30, 2023 will receive a subsidy of 10,000 yuan ($1,500) per car, taking effect from February 1, 2023, according to the plan.
The renewal of subsidies in Shanghai comes after China’s state-level subsidies for NEV purchases expired at the end of 2022.
Shanghai also announced the extension of purchase tax exemption for pure electric vehicles, plug-in hybrid vehicles and fuel cell vehicles during the period of Jan 1 – Dec 31, 2023, which is in line with national policy.
In addition, Shanghai will also provide subsidies for purchases of green smart home appliances, worth 10% of paid prices, capped at 1,000 yuan, according to the plan.
The city pledged to accelerate cultivating emerging industry clusters, speed up development of the industries including integrated circuit, biopharmaceutical companies and artificial intelligence, etc, according to the plan.