– A bonus of nearly 1,300 francs for the purchase of a clean vehicle
Drivers who swap an old vehicle for a newer model are eligible for a subsidy of up to 1,300 francs, the Ministry of Commerce announced at the Beijing auto show.
Visitors take photos in front of the Hyper SSR electric sports car, produced by Chinese automaker GAC Aion, at the Beijing Auto Show on April 26, 2024.
AFP
China is the world’s largest automobile market, and the most competitive in electric vehicles, with around a hundred innovative local brands launched into the race for the clean car of the future. But the economic slowdown, which is weighing on consumer spending, has led in recent months to a price war between manufacturers to the detriment of their profitability.
To stimulate demand, drivers who exchange an electric or hybrid vehicle registered before 2018 for a more recent model will be able to benefit from a subsidy of 10,000 yuan (around 1,260 francs) – 7,000 yuan (883 francs) for a vehicle purchased after 2018.
The measure, in force until the end of the year, concerns any purchase of a new electric or hybrid vehicle. It coincides with the Beijing motor show, where Chinese brands are stealing the spotlight from foreign manufacturers who are struggling to make the switch to electric.
Distrust
The decision also comes at a time when Chinese manufacturers are the subject of a certain mistrust in Western countries.
Pressed by France, which has several historic manufacturers, the European Commission launched an investigation in September into Chinese state subsidies to the sector. At the end of the procedure, it threatens to apply customs surcharges to protect the European market.
The United States, in general, denounces subsidies which, according to it, would lead to “overcapacity” of production and harm competition at the global level. Washington is also concerned about supposed risks for their national security with Chinese vehicles.
AFP/Muriel Naudin
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