Zhengzhou rolls out new measures to spur car sales

The municipal government of Zhengzhou, the capital of Henan province, issued on August 17 the policies formulated to spur automobile sales, which said buyers will be given subsidies of 5,000 yuan ($645) per car after enjoying discounts offered by complete vehicle manufacturers.

The vehicles available to the cash handouts include both oil-fueled and new energy vehicles sold and registered in Zhengzhou between June 1, 2020 and December 31, 2020. Notably, the subsidies the central government provides for NEV consumption remain unchanged.

At the same time, automobile sale companies are encouraged to step up their sales promotions for consumers, as part of efforts to stimulate consumption, vitalize market and stabilize economy growth.

As there are many uncertainties in the pandemic prevention and control and the economy has been running low, stabilizing and boosting automobile consumption provides effective approach for Zhengzhou's steady economic growth, thanks to the strong catalytic role the long automobile industrial chain plays in driving social economy, the government said in the newly-issued document.

Additionally, the perfection of NEV-related policies is highlighted as well. To be specific, Zhengzhou will properly implement the fiscal NEV supporting policies launched by the state's government and speed up the clearing of the subsidies that have already been determined. The local authority will strive to replace 3,000 fuel-burning taxis with BEVs before 2021.

Besides, local complete vehicle manufacturers are encouraged to research and develop NEVs for traditional taxi, ride-hailing and logistics services by being given a certain amount of subsidies.

Zhengzhou's government also noted that it will expedite the construction of charging infrastructures.

Furthermore, Zhengzhou's authorities plan to scrap 17,121 and 7,337 commercial diesel-powered trucks under the China Ⅲ emission standards or below in 2020 and 2021 respectively.