Subsidy for replacing old cars with new ones will be extended to 2030

The picture shows the Nantou County Environmental Protection Bureau encouraging old motorcycles to be replaced by electric motorcycles. (File photo)

In order to encourage the public to accelerate the elimination of old vehicles to improve air quality, the Ministry of Environment stated today (11th) that the current "Air Pollutant Reduction Subsidy Measures for Replacement of Old Vehicles with New ones", which was originally scheduled to end at the end of this year, will be extended to December 31, 2030 to guide owners of old vehicles to choose low-polluting means of transportation. According to the method, those who retire old vehicles more than 10 years old will receive a basic air pollution subsidy of 1,000 yuan for retired motorcycles, 2,000 yuan for small passenger trucks, and 30,000 yuan for large passenger trucks.

The Ministry of Environment stated that on January 11, 2023, the "Air Pollutant Reduction Subsidy Measures for Replacement of Old Vehicles with New Vehicles" was formulated. As long as people retire old vehicles that are more than 10 years old and replace them with electric vehicles or low-pollution vehicles, and attribute their air pollutant reduction benefits to the Ministry of Environment, they will be eligible for subsidies. Considering that the subsidy period is about to expire, in order to continue to promote the electrification of transportation vehicles, the method has been revised and the subsidy period has been extended from the original end of this year to December 31, 2030.

According to this method, people can receive 1,000 yuan for obsolete motorcycles, 2,000 yuan for small passenger trucks, and 30,000 yuan for large passenger trucks. According to statistics from the Ministry of Environment, more than 130,000 vehicles have responded to the promotion so far, and environmental impact assessment development units continue to put forward the need to purchase air pollution reduction benefits.

The Ministry of Environment stated that in order to expand and integrate the economic incentives for the replacement of various vehicle types, and to cooperate with the air pollution emission offset and matchmaking system, so that actual buyers of new cars have more flexible choices, car owners can attribute the reduction benefits of replacing old vehicles with new ones to the Ministry of Environment to apply for subsidies, or they can choose to participate in the matchmaking business and sell the reduction benefits to development units with environmental impact assessments for a price. Through the economic incentives of dual-track parallelism, it can not only encourage the public to accelerate the elimination of old vehicles, but also effectively help promote the electrification of domestic transportation vehicles.