BEIJING – The Beijing municipal government will subsidize car owners who voluntarily scrap their old State I emission standard vehicles in the second half of this year, local media reported recently.
The new policy, if implemented, will bring at least 200,000 units of new car demand to the capital city, said the media reports.
Executives of several automakers in charge of the Beijing market have been asked to give suggestions on subsidies for vehicle scrapping by relevant government departments, the media reports said.
More than 200,000 vehicles complying with the State I emission standards are running on the city’s roads, said the media reports. Another 200,000 units, with their original emission standards as the State II, have been downgraded to State I level due to long-time services.
If the subsidies are higher than the car price sold as a second-hand vehicle, many owners of State-I compatible cars will be happy to consider scrappy their old cars and purchase new ones, said the sources.
If implemented in the second half of the year, the subsidizing policy will give the gloomy auto industry a shot in the arm, said an industry analyst.