Shanghai (ZXZC)- Chinese megacity Shanghai is hammering out new policies to stimulate demand for automobiles, which was hit hard by the coronavirus spread.

Shanghai Municipal Development & Reform Commission stated at a press conference on April 23 that the yet-to-be-issued polices focus on such aspects as license plate increase, subsidy for fuel-burning vehicle replacement and NEV purchase, NEV popularization, charging facility perfection as well as policy support for ICV consumption.

(Photo source: SAIC Volkswagen)

The government plans to newly increase 40,000 license plates of non-profit passenger vehicles this year from March, which is a good news to those residents who have been long kept from buying their dream cars by the tight license supply.

Consumers who scrap or transfer a fuel-powered vehicle under the level 4 national emission standards or below will be given subsidy of RMB4,000 per vehicle. To further unleash the automobile replacement potential, vehicle sellers in Shanghai are encouraged to offer consumers some discounts based on the post-subsidy prices.

Besides, Shanghai will subsidize the NEV charging to spur NEV sales. Aside from the subsidy and purchase tax exemption offered by the central government, NEV consumers will score cash handout of RMB5,000 per car on their charging costs.

To further boost the application of NEVs, the municipal government intends to replace roughly 2,500 buses and 5,000 taxis with NEVs in 2020. In addition, eligible regions will be encouraged to operate routes for FCV pilot application in public transport area like logistics. The authority disclosed that five hydrogen-refueling stations are expected to be established this year.

The supporting policies should be improved correspondingly. The government will continue to issue free license plates for NEVs which feature no traffic or purchase restriction. Consumers who replace their fuel-burning vehicles with NEVs will be allowed to retain their license quota for conventional vehicles after obtaining NEV plates.

Furthermore, the city will move ahead with efforts to enhance the building of NEV charging and battery swapping facilities, and create a sound policy environment for ICV consumption. More scenarios for ICV applications and more routes for ICV road tests will be opened with pertinent laws and regulations being perfected.