Shanghai: Implementing a new round of subsidies for exchanging old and used cars for new ones and subsidies for replacing new energy vehicles

Support each district to provide certain rewards for the new sales revenue of used car dealers, and further promote the circulation of vehicle recycling channels. Encourage automobile brand owners, automobile sales enterprises, relevant industry associations, and other organizations to carry out various automobile renewal consumption promotion activities, eliminate old cars in accordance with laws and regulations, optimize the automobile consumption environment, and orderly promote the export of used cars.

On April 30th, the Shanghai Municipal People’s Government issued a notice on the Shanghai Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Exchange (2024-2027). It is mentioned that we will carry out the trade in of old cars for new ones. Implement a new round of subsidies for exchanging old and used cars for new ones and subsidies for replacing new energy vehicles. Support each district to provide certain rewards for the new sales revenue of used car dealers, and further promote the circulation of vehicle recycling channels. Encourage automobile brand owners, automobile sales enterprises, relevant industry associations, and other organizations to carry out various automobile renewal consumption promotion activities, eliminate old cars in accordance with laws and regulations, optimize the automobile consumption environment, and orderly promote the export of used cars.

The notice mentions the promotion of digital and intelligent upgrading and updating of production equipment. Intensify efforts to promote the digital transformation and technological transformation of industrial enterprises, comprehensively complete the intelligent transformation of large-scale enterprises, accelerate the expansion of the application of intelligent manufacturing equipment, medical equipment, testing equipment, basic software, and industrial software, and promote the pilot and application of new materials. Efforts will be made to promote the demonstration and application of the first set of high-end intelligent equipment, the first version of software products, and the first batch of new materials. Strengthen the promotion and application of innovative products in government procurement implementation units and government investment project construction units, and encourage state-owned enterprises to increase the proportion of innovative product procurement.

In addition, the notice mentions strengthening financial support. Make good use of the national refinancing policy tools, leverage the mechanism for expanding medium – and long-term loan disbursement in the manufacturing industry, and guide financial institutions to reasonably increase their credit resource allocation for equipment updates and technological upgrades. Encourage banking institutions to appropriately reduce the down payment ratio of car loans, and reasonably determine loan terms and credit limits. Actively exploring the application of financing leasing and other models to attract social capital to participate in equipment updates. Fully leverage the role of green financial service platforms, deepen the integration mechanism of “government, bank, insurance, and enterprise”, and provide support for financial institutions to carry out green finance and transitional financial services.

Shanghai’s Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Exchange (2024-2027)

In order to implement the requirements of the State Council’s “Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Exchange for New” (Guofa [2024] No. 7), strengthen standard guidance and policy guarantees, promote the development and transformation of high-end, intelligent, and green industries, improve the safety and intelligence level of urban infrastructure, promote more high-quality and durable consumer goods to enter residents’ lives, smooth the resource recycling chain, and strive to lead the country in equipment renewal in ten fields such as industry, energy, construction, transportation, and four types of consumer goods exchange for new in automobiles, home appliances, and home decoration by 2027. Based on the actual situation of this city, this action plan is formulated.

1、 Promote equipment updates

(1) Promote the digital and intelligent upgrading and updating of production equipment.

(2) Promote the green and low-carbon renovation of energy consuming equipment.

(3) Promote green and low-carbon transformation of data centers.

(4) Promote the upgrading and renovation of energy and power facilities.

(5) Accelerate equipment updates in the field of municipal infrastructure.

(6) Promote the upgrading and renovation of equipment in the construction field.

(7) Accelerate the elimination and updating of transportation equipment.

(8) Improve the level of teaching and research equipment in the field of education.

(9) Promote the upgrading of equipment in the field of cultural tourism.

(10) Strengthen the transformation and upgrading of medical equipment.

2、 Continuously implementing the trade in policy for consumer goods

(11) Carry out car trade ins.

(12) Support the implementation of exchanging old for new household appliances.

(13) Promote the replacement of home decoration consumer goods.

(14) Orderly carry out the exchange of old and new electric bicycles.

3、 Improve and enhance the recycling and reuse system

(15) Improve the network for recycling waste products and equipment.

(16) Support the circulation and trading of second-hand goods.

(17) Orderly promote remanufacturing and cascading utilization.

(18) Promote high-level regeneration and utilization of resources.

4、 Strengthen policy support and guarantee

(19) Strengthen standard support.

(20) Increase financial and tax policy support.

(21) Strengthen financial support.

(22) Strengthen factor protection.

(23) Strengthen innovation support.

(24) Increase the driving force.

-