The 2024 Shanghai Summer Auto Shopping Festival kicks off on Aug 1, 2024. [Photo/WeChat account: sh-jiading]

The 2024 Shanghai Summer Auto Shopping Festival kicked off in Jiading district on Aug 1, promising a summer of promotions and subsidies aimed at boosting vehicle sales and encouraging upgrades to green, more efficient models.

The festival, which runs through October, features a diverse range of promotional activities organized by various districts, car brands, and dealerships across the city. At the heart of the initiative are national and local subsidies for car replacement.

China's vehicle emission standards, known as the national standards, are akin to the European emission standards and are designed to reduce air pollution from vehicles. National III are comparable to Euro 3, which were implemented in China around 2007. National VI, which was implemented in 2023, is among the most stringent standards in the world.

Individuals scrapping vehicles meeting National III or lower emission standards or new energy vehicles registered before April 30, 2018, and purchasing a new energy vehicle listed in the Ministry of Industry and Information Technology's catalog are eligible for a national subsidy of 20,000 yuan ($2,803.1). A 15,000-yuan subsidy is also available for those replacing National III or lower emission standard fuel vehicles with new fuel vehicles with a 2.0-liter or less powerful engine.

Complementing the national program, Shanghai has expanded the coverage of subsidies to also cover all those replacing older vehicles with new ones meeting National VI emission standards. This includes a 4,000-yuan subsidy for replacing vehicles with National IV or lower emission standards and 2,800 yuan for National V emission vehicles. Additionally, a 10,000-yuan subsidy is offered for those purchasing new electric vehicles.

Jiading district is further contributing to the effort by offering a 1,000-yuan subsidy for purchases of passenger cars worth 50,000 yuan or more from local retailers during the promotion period.

Beyond subsidies, companies are launching various special services and marketing activities to cater to diverse consumer needs. Anji Car Rental & Leasing Co Ltd, for example, is offering a value-retaining leasing service that targets various types of enterprises in the city, offering two-to-three year cycles for new energy vehicle leases to the employees of the enterprises

Source: Jiefang Daily, "scofcom" WeChat account