Chongqing—To boost purchasing, the Chongqing government has introduced trade-in policies for consumer goods, including cash subsidies for the new energy vehicle (NEV) sector. Numerous automakers have launched promotional campaigns in response.
The manager at Tesla's Shin Kong Place store noted its favorable trade-in options, such as zero down payments and 1% starting annual rates for the Model Y rear-wheel-drive and similar incentives for the designated Model 3. These offers and corporate purchase benefits have led to a surge in recent buyers.
At the bustling Tesla showroom in Chongqing's Shin Kong Place mall. Mr. Liu, among the crowd, shared, "I'm considering the limited-time low-interest trade-in policy for the Model Y. Opting for a Tesla trade-in could mean up to five years of zero or ultra-low interest rates, complemented by Chongqing government's newly released subsidy."
Peng Heliang, Deputy Director of the Chongqing Municipal Commission of Commerce, announced that the 2024 trade-in program will receive over 2.4 billion yuan (around USD 330 million) from central and municipal governments. It aims to inspire district and county investments totaling 3 billion yuan and draw over 15 billion yuan in total investments from businesses, financial institutions, and platforms.
Peng added that this effort is expected to create a trade-in policy worth over 20 billion yuan, increasing market consumption to above 300 billion yuan.
Chongqing citizens seek information about the trade-in subsidy program at the Chongqing Yuhang Tesla Center. (Photo/Tesla)
The 2024 subsidy plan includes cash subsidies of 10,000 yuan and 7,000 yuan for scrapping old passenger cars and trading them for new energy or energy-saving fuel vehicles, respectively.
Eligible consumers trading in old passenger cars for NEVs will receive municipal subsidies of 2,000 to 3,000 yuan per car, depending on the price grade. Additionally, key auto distribution enterprises supporting trade-ins will receive up to 2 million yuan in municipal subsidies.
The program aims to increase end-of-life automobile recycling by over 50% compared to 2023, with second-hand car transactions increasing by over 20%. NEV ownership is targeted to rise by 200,000 vehicles annually by 2025.
Customers inquire about Xiaomi's newly released SU7 at the Mi Home Experience store at MixC Chongqing on March 26, 2024. (Photo/Zheng Ran)
Chen Xueqin, executive vice president of the Chongqing Automobile Business Association, emphasized that the trade-in policy effectively boosts the rate of used car replacements, encouraging car owners to switch to newer models.
Chen added that incentivizing the replacement of old, high-energy-consumption, and high-pollution vehicles with NEVs promotes environmental awareness and shifts consumption patterns towards cleaner alternatives, thereby increasing the market share of NEVs.
"The end-of-life vehicle recycling and disassembly technologies have significantly improved, with enterprises investing heavily in dismantling and pollution prevention, ensuring effective environmental protection during the recycling process," highlighted an official from the Chongqing End-of-Life Vehicle Recycling and Disassembly Industry Association.
The goal of the Chongqing consumer goods trade-in policy in the NEV sector. (Graphic/Zheng Ran)