Shanghai (ZXZC)- Recently, the Department of Commerce, the Department of Finance, and three other departments of China’s Hubei province issued the "Detailed Implementation Rules for Hubei Province's Vehicle Replacement Subsidies," announcing the allocation of 300 million yuan in fiscal funds for vehicle replacement subsidies.

Specifically, from May 16, 2024, to December 31, 2024, individual consumers who transfer ownership of a small oil-fueled passenger car or new energy passenger car with a Hubei license plate, and then purchase a new oil-fueled car or new energy car in Hubei and register it for non-commercial use, can apply for a one-time subsidy. The subsidy will end once the funds are exhausted, unless a new announcement extends the program. Each applicant can only receive the subsidy once during the program period.

All-New CR-V; photo credit: Dongfeng Honda

The abovementioned passenger cars refer to small-sized and mini passenger vehicles as defined in the "Motor Vehicle Specification Classification" (GA802-2019) managed by China's Ministry of Public Security. New energy vehicles include pure electric vehicles, plug-in hybrid electric vehicles (including range-extended electric vehicle types), and fuel cell vehicles, which are marked as "new energy" on the vehicle registration certificate and have green license plates.

Vehicles to be transferred refer to small oil-fueled or new energy passenger cars registered under the individual consumer's name in Hubei Province (hereafter referred to as "old cars") that are transferred in ownership (excluding registration changes), with a valid "Unified Invoice for Used Car Sales" from Hubei Province, and completion of the transfer registration procedures.

Newly purchased vehicles refer to new small oil-fueled or new energy passenger cars (hereafter referred to as "new cars") purchased by individual consumers in Hubei Province, with a valid "Unified Invoice for Motor Vehicle Sales" from Hubei Province, and registration with the traffic management department of the Hubei Provincial Public Security Bureau, obtaining a valid "Motor Vehicle Registration Certificate" for non-commercial use.

The subsidy standards are divided into new energy vehicles and oil-fueled vehicles. For new energy vehicles, the subsidy amounts are: 3,000 yuan for vehicles priced between 60,000 yuan (inclusive) and 100,000 yuan (exclusive), 5,000 yuan for vehicles priced between 100,000 yuan (inclusive) and 200,000 yuan (exclusive), and 7,000 yuan for vehicles priced at 200,000 yuan (inclusive) or more. Purchase tax has been included in the car price.

For oil-fueled vehicles, the subsidy amounts are: 2,000 yuan for vehicles priced between 60,000 yuan (inclusive) and 100,000 yuan (exclusive), 4,000 yuan for vehicles priced between 100,000 yuan (inclusive) and 200,000 yuan (exclusive), and 6,000 yuan for vehicles priced at 200,000 yuan (inclusive) or more.

Additionally, the vehicle replacement subsidy is intended for individual consumers, who must initiate the subsidy application themselves. The application period is from 8:00 AM on May 31, 2024, to midnight on January 10, 2025. Subsidies are granted on a first-come, first-served basis until the funds are depleted.