Benzinga - by Anan Ashraf, Benzinga Editor.
Chinese auto customers can get as much as 10,000 yuan ($1,379.98) upon trading in their old vehicles and opting for a more energy-efficient one.
What Happened: China’s Ministry of Commerce said in a statement on Friday that customers who scrap fuel passenger cars that do not comply with its 2007 emissions standard or new energy vehicles registered before April 30, 2018, can receive a one-time subsidy.
Those who scrap these vehicles to replace them with qualified new energy passenger cars will receive a subsidy of 10,000 yuan, it said.
Why It Matters: The subsidy program will be applicable till the end of 2024 and is aimed at countering weak consumer sentiment within the country and increasing EV adoption within the world’s largest auto market.
The Chinese EV market is dominated by Warren Buffett-backed BYD Co (OTC:BYDDY). The company sold 626,263 new energy vehicles in the first quarter, marking a year-on-year jump of 13.44%.
In China, new energy vehicles refer to vehicles powered predominantly by electric energy.
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