Beijing is offering subsidies for purchases of electric vehicles and other new-energy vehicles to replace old cars, the latest attempt by local authorities to boost consumption in a slowing economy.
The financial aid provided by the city ranges from 8,000 yuan ($1,196) to 10,000 yuan for qualified buyers who scrap or resell cars owned for more than a year, among other conditions, the local commerce bureau said in a statement Sunday.
The capital city’s move follows similar measures announced by Shanghai late last month that also involved raising a cap on car ownership and cutting a purchase tax for some passenger vehicles.
Passenger vehicle sales in China slid 17 percent in May from a year earlier, and not a single new car was sold in Shanghai in April as the virus gripped the city.
China’s central government is considering extending tax exemptions on new-energy car purchases in a bid to boost an auto sector battered by strict Covid lockdowns, state television reported Wednesday, citing a Cabinet meeting chaired by Premier Li Keqiang.
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