On August 16th, the Ministry of Commerce and 7 other departments issued a notice on further improving the work of exchanging old cars for new ones. In terms of updating scrapped cars, the subsidy standard has been raised from the original subsidy of 10,000 yuan for purchasing new energy passenger vehicles and 7,000 yuan for purchasing gasoline passenger vehicles to 20,000 yuan and 15,000 yuan, respectively, both of which have increased by more than twice.
On August 16, the Ministry of Commerce and 7 other departments issued a notice on further improving the work of trading in old cars for new ones. Specifically, the subsidy standard has been greatly increased. In terms of scrapping and renewal of automobiles, the subsidy standard for purchasing new energy passenger vehicles has been increased from the original 0.01 million yuan to 0.02 million yuan, and the subsidy for purchasing fuel-powered passenger vehicles has been increased from 7,000 yuan to 15,000 yuan, respectively, both more than doubling. In addition to scrapping and renewal, this policy also includes replacement and renewal in the subsidy scope. The state will directly allocate long-term special national debt funds to localities to support them in carrying out replacement and renewal independently.
"The release of the policy is undoubtedly bullish for the entire automotive industry chain," said Lang Xuehong, vice secretary-general of the China Automobile Dealers Association, in an interview with reporters. Raising the subsidy standard for scrapping and renewing cars will have a greater stimulating effect. The policy is very timely, and with policy reinforcement, it is expected to drive at least one million units of scrapped and renewed vehicles and provide strong support for automobile consumption and the growth of the automotive market in the second half of the year. Caijing Securities pointed out that the subsidy for trading in old cars for new ones has been further increased, coupled with the new energy going-to-the-countryside campaign, the reduction of purchase tax for new energy vehicles, financial credit support for car purchases, and supporting discounts continuously released by enterprises. Sales of new energy vehicles in the price range of 50,000 to 200,000 yuan are expected to be further boosted. Self-branded car enterprises with higher new energy product sales in this price range will benefit the most.
According to the Financial Data Center, among related listed companies:
Anhui Jianghuai Automobile Group Corp., Ltd. is a comprehensive automobile manufacturer that integrates the research and development, manufacturing, sales, and service of commercial vehicles, passenger vehicles, and powertrains. The first product developed in cooperation with Huawei has already entered the whole vehicle verification stage, and is planned to be offline by the end of this year and on the market in the first half of next year.
BAIC BluePark New Energy Technology Co., Ltd. is one of the leading companies in China's new energy automobile industry, specializing in the research and development, production, sales, and service of pure electric passenger cars and core components.