Shanghai unveils measures to accelerate auto consumption

Shanghai has introduced new measures to revitalize automotive circulation and promote vehicle replacement in the city.

The measures aim at further stimulating automotive consumption, particularly through the replacement of old vehicles with new ones and the promotion of new-energy vehicles.

Over the years, Shanghai has implemented various policies to encourage vehicle replacement, enhancing the convenience of new car purchases and used car transactions, which have yielded significant results.

Automotive consumption now accounts for over 10 percent of the city's total retail sales of consumer goods, playing a crucial role in stabilizing economic growth and boosting overall consumption, according to the Shanghai Commission of Commerce.

The newly introduced measures consist of nine specific initiatives, focusing on several key aspects of automotive circulation and consumption.

On vehicle upgrades, for example, a new round of subsidies will be launched for the replacement of old fuel-powered cars with new ones. Individuals who scrap or transfer eligible old vehicles and purchase new fuel-powered cars that meet certain requirements will be eligible for subsidies.

In line with the national push to promote NEVs, the measures also include the continuation of subsidies for the replacement of NEVs. Additionally, efforts will be made to facilitate the application process for special license plates for NEVs through the one-stop online services platform, ensuring the smooth acceptance and issuance of these special license plates.

To further streamline the used car market, measures will be promoted to facilitate and optimize the process of exporting used cars.

Improving the automotive consumption environment is another priority outlined in the measures. Efforts will be made to promote the online signing of automotive sales contracts, encouraging the use of vehicle information reports during used car transactions. They also emphasize the importance of recycling and reusing scrapped vehicles, contributing to a more sustainable automotive industry.

Meanwhile, the measures highlight the significance of digital transformation within the automotive sector, supporting the adoption of digital technologies and processes in the industry, which aims to enhance the efficiency and transparency of used car transactions.

In addition to these specific measures, the city's commerce commission, together with other related authorities, will support each district in formulating policies and measures tailored to their local conditions, further promoting vehicle replacement and boosting overall automotive consumption.