Shanghai to subsidize 'old for new' car trade-in

Shanghai, May 31, 2009: (Gasgoo.com) Shanghai will subsidize its residents who scrap polluting cars and trucks and buy eco-friendly vehicles in a bid to clean up the city's sky ahead of the Shanghai 2010 World Expo and to boost the auto sales in the city, Shanghai Daily said today.

From tomorrow (June 1) to April 30 next year, local residents in Shanghai who trade in vehicles rated at China I emission standard or below for vehicles meeting the China IV standard will be granted an average subsidy of 5,000 yuan ($732).

The subsidy will vary according to the size of the vehicles and their age. Vehicles must have been registered before the end of 2002 and people who apply for the subsidy must pay any taxes due.

If a small passenger car was registered before 1998, the owner of the car can get 4,500 yuan when buying a new car that meets the China IV standard, the equivalent of the second-highest level in Europe. The subsidy rises to 5,000 yuan if the car was registered in 1999 and 2000 and to 5,500 yuan for a car registered in 2001 and 2002.

The subsidy plan is expected to help get 50,000 old and polluting vehicles off the Shanghai's roads by April next year, reducing emissions by 8% and boosting spending on vehicles by 7 billion yuan.

The World Expo in Shanghai will start on May 1 and run through to October 31, 2010. The local government tries to ensure clean air for the global trade fair, a high-profile coming-out party to boost the super-city's international status.

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