BEIJING (Reuters) – China’s commerce ministry on Friday announced subsidies of up to 10,000 yuan ($1,379.96) apiece for scrapping old cars in exchange for new ones by the year-end, an attempt to boost demand in the world’s largest auto market.
Anyone trading in an old gasoline cars for a new one is entitled to a 7,000 yuan subsidy, while anyone swapping an old car for a new energy vehicle will get 10,000 yuan, the commerce ministry said in a joint statement with six other government bodies including the finance ministry.
It did not disclose the total amount of subsidies.
The central government will contribute 60% of the auto trade-in subsidies while local governments will contribute the remaining 40%, with the ratios varying across regions.
($1 = 7.2466 Chinese yuan renminbi)
(Reporting by Qiaoyi Li and Bernard Orr; editing by Christina Fincher)
