Shanghai (ZXZC)- Shenzhen, a coastal city in the south of Guangdong Province, will offer up to 40,000 yuan ($5,644) per car of subsidies to consumers who buy new energy vehicles (NEVs) as part of efforts to stimulate automobile consumption whittled down amid the COVID-19 pandemic.

Qualified consumers will be able to receive Shenzhen's subsidies for buying a new energy PVs or replacing their old cars with a new energy one, according to the Development and Reform Commission of Shenzhen Municipality.

(BYD Song Pro EV, photo source: BYD)

Specifically, people who buy premium or more affordable all-electric PVs in Shenzhen and get them locally registered will be given a so-called “comprehensive usage” subsidy worth 20,000 yuan ($2,822) per car, and 10,000 yuan ($1,410) per car is available to those who purchase premium plug-in hybrid PVs in the city and receive license plates there.

In addition, owners who replace their old cars with an all-electric PVs or plug-in hybrid PVs can enjoy the so-called “one-off replacement” subsidies worth 20,000 yuan or 10,000 yuan per car.

It is noteworthy that the application of the “comprehensive usage” and the “one-off replacement” subsidies can be overlapped, which means an applicant can get subsidies of up to 40,000 yuan ($5,643) per vehicle.

Local government also eases the restriction on consumers applying for NEV license plates. People who are without household registration in Shenzhen and below a two-year social welfare payment are allowed to apply for NEV licenses as long as they hold a valid residence permit or the proofs of such identities as overseas Chinese, fellow compatriots in Hong Kong, Macao and Taiwan, and foreigners. 

Furthermore, if a man has only a locally-registered car or a purchase indicator, he is now permitted to buy another BEV or PHEV, said the Shenzhen authority.

However, the policy also sets several price thresholds and specific technical requirements on the products qualified for subsidies. For instance, the aforementioned premium BEV and the premium PHEV should be priced above 200,000 yuan ($28,217) and 160,000 yuan ($22,573), and the price of an affordable BEV should be below 150,000 yuan ($21,163). The length of a premium all-electric PV, an affordable pure electric PV and a premium plug-in hybrid PV should stand between 4,970-5,200mm, 4,230-4,680mm, and 4,650-5,000mm respectively. Thus, the likes of Tesla Model 3, the Xpeng P7 and the NIO ES6 are ruled out, while BYD is the biggest beneficiary.