Shanghai has announced an expansion of subsidies for the trade-in of used consumer goods during a press briefing by the municipal government on Sept 3.

The new policies, aimed at stimulating consumption and supporting seniors, were unveiled by Zhu Minglin, the deputy director of the Shanghai Municipal Development and Reform Commission.

One of the key highlights of the new subsidies is the extension to a broader range of products beyond cars. In addition to enhancing subsidies for vehicles, the program now includes a new catalog of senior-friendly products, home appliances, household items, and furnishing materials. Zhu emphasized that these measures are designed to incentivize the replacement of older goods with newer, more energy-efficient options.

For cars, Shanghai is implementing subsidies in two ways. Firstly, the city will align with national policies regarding individual purchases of new cars. Subsidies for new energy vehicles will increase from 10,000 yuan ($1,404) to 20,000 yuan, while those for traditional fossil fuel-powered vehicles with engines of 2.0 liters or less will rise from 7,000 yuan to 15,000 yuan.

Moreover, Shanghai has raised the standards for subsidizing trade-in cars. The subsidy for trading in electric vehicles stands at 15,000 yuan, while that for fossil fuel-powered cars is set at 12,000 yuan.

To support energy efficiency, Shanghai is offering discounts on eight categories of home appliances, including refrigerators and washing machines. Purchases of appliances with a Grade-1 energy label will receive a 20-percent discount, while those with a Grade-2 energy label will be eligible for a 15-percent discount.

Notably, a new section has been added to the subsidy program, focusing on senior-friendly products. Shen Min, the deputy director of the Shanghai Municipal Civil Affairs Bureau, highlighted that subsidies for these products are available to all buyers, regardless of age or residency status. The 15 categories covered include items such as walk-in tubs, intelligent cameras, and smoke sensors, with the aim of promoting awareness and enhancing the safety and convenience of the elderly population.

Liu Min, deputy director of the Shanghai Municipal Commission of Commerce, confirmed that the subsidies for home appliances will remain in effect through the end of 2024.