Xinhua. China’s subsidy to encourage the replacement of older, higher-emitting vehicles boosted domestic auto spending by 20.5 billion yuan (US$3 billion) in the first half of the year, according to the Ministry of Commerce (MOC).
Relevant departments had handed-out 2.4 billion yuan in subsidies that had resulted in 174,000 vehicles being replaced in the first six months this year, said the MOC in the statement.
In a bid to accelerate the elimination of high-emissions and polluting vehicles and stimulate automobile consumption, the government rolled out the “old car for new” subsidy last June—encouraging people to replace their old cars.
Subsidies range from 3,000 (US$349) to 6,000 yuan. The subsidy will last until 31 Dec.
China Association of Automobile Manufacturers (CAAM) said that Chinese auto sales rose 47.67% year on year to 9.02 million units in the first half of the year.