In an effort to boost local car consumption southern China's Guangdong province has launched a new incentive.

On June 29, the Guangdong Provincial Development and Reform Commission launched a vehicle trade-in program, offering a subsidy of up to RMB 10,000 ($1550).

Specifically, if consumers scrap their old cars, they will receive subsidized funds of RMB 10,000 /vehicle for the use of new energy vehicles after they purchase them.

If they purchase a fuel car, then the subsidy amount will be halved to RMB 5,000/vehicle.

If the consumer replaces their old car, then they will receive subsidy funds of RMB 8,000 /vehicle in the use after purchasing a new energy vehicle. If they buy a fuel car, then the subsidy they will receive is RMB 3,000 /vehicle.

A total of 24 car companies and 2,065 outlets are eligible to participate in the initiative.

In terms of shortlisted models, 59 gasoline passenger cars and 45 new energy passenger cars are selected.

The subsidy period is from July 1, 2021, to December 31, 2021, and each applicant can only enjoy the subsidy for 1 vehicle.

"The car trade-in can not only reduce pollutant emissions from vehicles in use, but also further boost the province's auto consumption market and promote the development of the auto industry." Nanfang Daily quoted sources from the Guangdong Provincial Development and Reform Commission as saying.

Average unit price of new energy credits in China stood at about $188 in 2020

(Source: Unsplash)