(MENAFN) In a bid to stimulate car sales and promote the adoption of modern vehicles, China's Ministry of Commerce unveiled a new initiative offering financial incentives to owners who replace their old cars with newer models. According to the ministry's announcement, individuals opting for this program will receive support of up to ten thousand yuan, approximately equivalent to 1,380 US dollars.
As the world's largest car market, China has emerged as a frontrunner in the electric vehicle sector, boasting over 100 local companies actively engaged in this burgeoning industry. However, recent economic slowdowns, particularly in the wake of global events and the country's position as the second-largest economy after the United States, have led to a decrease in consumer spending. Consequently, manufacturers have been compelled to slash prices to remain competitive, albeit at the expense of their profit margins.
Recognizing the need to rejuvenate demand for new vehicles, the Chinese government has stepped in with this proactive measure. Under the terms of the initiative, individuals replacing electric or hybrid cars registered before 2018, or gasoline-powered vehicles failing to meet certain national emission standards, will qualify for government support. Those opting for this scheme and purchasing cars post-2018 will receive a subsidy worth seven thousand yuan (USD960).
This incentive program, slated to run until the end of the current year, encompasses all new purchases of electric or hybrid vehicles, effectively encouraging the adoption of environmentally-friendly transportation options.
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