China will provide support of up to 10,000 yuan, approximately $1,380, to owners who trade in their old cars for new ones, according to the Ministry of Commerce. The ministry announced that "the government will provide support to anyone who replaces an electric or hybrid vehicle registered before 2018, or a fuel vehicle that does not meet certain national emission standards, with a new one."
The ministry further explained that "those who replace cars purchased after 2018 will be eligible for government support of 7,000 yuan ($960)." The initiative, which will continue until the end of this year, covers all new purchases of electric or hybrid vehicles (those running on fuel and electricity).
The announcement coincides with the China Auto Show, where local companies are drawing attention at the expense of foreign manufacturers struggling to transition from fuel-powered to electric cars. Additionally, the new measure comes at a time when Chinese automotive manufacturers are facing increased pressure in Western countries.
In France, where many companies have historically dominated the auto market, the European Commission has opened an investigation into the support packages provided by the Chinese government to the electric vehicle sector, and has threatened to impose additional tariffs to protect European markets.
