Shanghai (Gasgoo)- The government of Shenzhen city, Guangdong province has decided to offer a new round of incentives to consumers who replace their older cars with newer ones, as part of the efforts to boost car sales, according to a document recently issued by the Commerce Bureau of Shenzhen Municipality.

BYD Han EV; photo credit: BYD

The stimulus program includes subsidies of 3,000 yuan ($470) to 5,000 yuan ($785) per car to boost automobile replacement. Notably, a consumer who buys a new energy vehicle as a replacement will be granted the maximum cash of 5,000 yuan. As for oil-fuel vehicles, those who purchase a car priced below 300,000 yuan ($47,100) will be awarded 3,000 yuan, while 5,000 yuan per car will be available for buyers of the car priced at or above 300,000 yuan.

The incentives are only applicable to car owners who get their cars locally registered in Shenzhen. The policy has already become effective and will be ended on June 20, 2023. Given the limited budget, the money will be given on a first-come-first-serve basis.

Prior to the release of the new incentives, Shenzhen launched a similar “auto replacement” scheme for the year of 2020 to 2021, under which nearly 250 million yuan ($39.246 million) of subsidies were offered to over 60,000 consumers.