The Shanghai Municipal Commission of Commerce, in collaboration with relevant departments, recently unveiled a set of measures aimed at invigorating the automobile consumption market and expediting the phase-out and replacement of older vehicles. These measures, collectively known as the "Shanghai Measures for Revitalizing the Automotive Circulation and Expanding Vehicle Renewal" (referred to as the "Measures"), came into effect on September 7, 2023, and consist of nine specific provisions, as outlined below:

1) Introduction of a new round of "trade-in" subsidies for older vehicles: From August 1, 2023, to December 31, 2023, individual consumers who scrap or transfer (excluding registration changes) non-commercial gasoline-powered cars registered in Shanghai and purchase a new non-commercial gasoline-powered car from an automobile sales institution registered with the municipal market supervision and administration department are eligible for a one-time subsidy of 2,800 yuan towards their vehicle purchase.

2) Continuing the implementation of new energy vehicle replacement subsidies: Until December 31, 2023, individual consumers who scrap or transfer (excluding registration changes) their non-commercial cars registered in Shanghai and purchase a new pure electric car with non-commercial use registered with the municipal market supervision and administration department can apply for a one-time subsidy of 10,000 yuan towards their vehicle purchase.

3) Advancing online contract signings for automobile sales: Encouraging both parties involved in automobile sales contracts to further specify and confirm elements such as down payments, delivery times, service-related charges, and other verbal commitments, enhancing consumer protection and legal rights.

4) Streamlining the application process for licenses dedicated to new energy vehicles: Ensuring efficient acceptance, issuance, and other related processes for special licenses for new energy vehicles, continuously improving consumer satisfaction and experience.

5) Promoting the use of vehicle information reports in used car transactions: Encouraging the transparent and symmetric provision of information, covering vehicle registration, insurance, claims, and maintenance, during used car transactions. Supporting used car dealerships in providing convenient services such as offline service points, expanding online transaction capabilities, and offering doorstep vehicle collection services to enhance convenience for citizens during used car transactions.

6) Facilitating and optimizing export procedures for used cars: Advancing the "Transfer Registration Pending Export" pilot program at used car registration service stations, ensuring comprehensive coverage for the "Transfer Registration Pending Export" and "Export Deregistration" services in the city's used car trading market. Supporting other qualified used car export service platforms to apply for relevant business.

7) Encouraging market-oriented, specialized, and efficient development of scrapped vehicle recycling and disassembly industry: Promoting the improvement of the scrapped vehicle recycling and utilization system to enhance recycling efficiency and service levels. Advancing the "One-Stop Scrap Vehicle Deregistration" policy.

8) Propelling digital transformation in the automobile circulation field: Accelerating the construction of the "Shanghai Motor Vehicle Full Lifecycle Management Service Platform," and integrating information resources across departments and stages to ensure transparent transaction information, standardized transaction processes, and collaborative business operations. Supporting the development of e-commerce platforms for used car transactions, enriching the content of used car transaction information, strengthening the management of online used car business operations through information technology, and safeguarding the legal rights and interests of vehicle buyers.

9) Supporting regional policy measures to promote vehicle renewal consumption: Encouraging automobile brand manufacturers, districts, industry associations, and automobile sales enterprises to launch various activities to promote vehicle renewal consumption. Encouraging districts with the eligible conditions to leverage their existing advantages in the automobile circulation field to create demonstration zones for quality automobile consumption, and providing relevant policy support for network layout and financial services.