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China to Provide Incentives for Scrapping Old Vehicles to Stimulate New Car Market

Shanghai Daily. China will offer incentives for scrapping old cars and buying news ones in an effort to re-invigorate the new car market, which declined 3.8% in November, according to an unnamed official with the Ministry of Commerce.

In Shanghai, a similar plan has already worked. New car sales rose more than 10 percent at a local Volkswagen dealer, which began offering car scrap bonuses of 3,000 yuan (US$428) a month earlier.

The ministry’s plan is among several measures to bail out the country’s auto industry. Other planned steps include tax cuts on car purchases and improved credit services for car transactions.

Comments

HarveyD

This plan could be doubly productive if the new replacement vehicles are ultra low GHG types, Hybrids, PHEVs or BEVs.

The bonus could vary with how clean the new vehicle operates and how little liquid fuel it consumes.

How much incentive would be required before old (12-15 years)pick-ups owners trade them in?

ToppaTom

It's been a long time since I had a car for which I would take a paltry $428 and then go buy a high $$$$, new car.
Even then, it was not one that actually ran - and they ain't no car what's greener than one that don't run !
Where would this program work ?
Oh - In Shanghai or China ? - Whatever.

Reel$$

The problem is much more massive. With huge layoffs due to factory order cancellations - there won't be any money to buy new anything.

They'll do what everyone else does, e.g. Cuba, SA, etc. - keep the ol' stinkpot running til a ship comes in.

HarveyD

France has a similar incentive program to scrap older vehicles.

One may can as much as 10K Euro if you scrap an old gas guzzler and replace it with a BEV. You get less depending on the fuel consumption of the replacement vehicle.

Leah

The "incentive" program will put even more people in debt. 25% of car buyers today can't qualify for a loan. Selling people cars has never been the problem. It's the part where people have to PAY for them - that's the tricky part. Financing is not so easy anymore. I'm with the "no car is the greenest car" -- you really don't NEED a car every day. Add up the savings every single day and you'd be surprised how much you have in the 6 years of payments you can save. Not to mention gas, repairs, insurance, etc...

HarveyD

Leah:

A NO CAR world is not possible until you have appropriate public transport every where. We are very far from that in North America.

The current school bus systems (with a few million buses) could be expanded to serve many more people. Work and study shedules may have to be harmonized to maximize buses' use. Workers could be transported between 6h and 7:30h and students between 7:30h and 9h. A similar arrangement could be done for the afternoon-evening period. Alternatively, on selected routes, both students and workers could travel together.

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