The government of the city of Shanghai, China provides direct money for its citizens who want to replace their old cars with electric cars. The subsidies in the form of fresh funds are given in the range of 8,000 Yuan to 10,000 Yuan.
The money was given not only to increase the population of electric cars but also to increase consumption.
The reason is that after the Covid-19 pandemic, economic activity in Shanghai has slowed down. But not everyone can get the funds.
Those who are entitled to the subsidy are only those who are willing to sell their old car which is only a year old. So a used car that is very old will not get these privileges.
Shanghai’s effort to give the money is a further step to stimulate the auto trade. Previously they had also reduced vehicle taxes and also imposed new interest on car purchases on credit.
Shanghai is really trying hard to get car sales excited again. The reason is that car sales continue to decline in the city. Even in April, there were absolutely no cars sold in Shanghai.
After this they even attempted to issue another policy. For example, extending the tax exemption on the purchase of electric cars. It is known that when the Covid-19 pandemic began three years ago, all electric car owners were exempt from paying vehicle taxes.
