Shanghai (ZXZC)- The municipal government of Shanghai, one of major metropolises in China, will continue to subsidize the consumers who replace their old cars with new energy vehicles, as part of efforts to spur automobile sales.

According to a document issued by the government on Jan. 29, individual consumers, who scrap or transfer the passenger cars registered in Shanghai accordance with relevant standards and buy new energy vehicles as replacement before Jun. 30, 2023, will be granted a subsidy of 10,000 yuan ($1,470) per car.

To give a solid boost to market confidence, Shanghai municipal government confirmed that the all-electric vehicles, plug-in hybrid electric vehicles (including range-extended electric vehicles), and fuel cell vehicles, which are purchased between Jan. 1, 2023 and Dec. 31, 2023 and included in the catalogue co-issued by China's MIIT and State Taxation Administration, will be exempted from the vehicle purchase tax.

Moreover, the megacity's government said it would support the recovery of the convention and exhibition industry, of which the Auto China, namely, the Shanghai International Automobile Industry Exhibition, is a vital exhibition to be held this year.