Shanghai has recently made a significant change to its car trade-in subsidy policy, expanding the coverage to include non-locally registered vehicles. This move comes as part of ongoing efforts to boost consumption in the city.
Previously, only vehicles registered in Shanghai were eligible for trade-in subsidies. However, with the new announcement from the Shanghai Commission of Commerce, old vehicles registered in other cities can now also apply for these subsidies.
Shanghai, known for being home to SAIC Motor, Nio, and Tesla’s factory in China, is now offering individual consumers a one-time subsidy of up to RMB 15,000 if they purchase an electric vehicle priced at RMB 100,000 or above and trade in their old cars registered elsewhere within a specified period. For those purchasing a new gasoline vehicle priced at RMB 100,000 or more, the subsidy is RMB 13,000. Each consumer is limited to one car trade-in subsidy per year.
Shanghai is recognized as one of China’s most EV-friendly cities, offering free green license plates for purely electric vehicles. Residents who register a gasoline or hybrid vehicle in the city must obtain a blue license plate through an auction process. In the latest March auction, the lowest price paid for a blue plate was RMB 94,100.
China introduced a trade-in subsidy policy for the auto sector in April 2024, which was later increased in July of the same year. The policy was initially valid until the end of 2024 but was renewed on January 8 this year to continue supporting auto consumption.
According to the National Development and Reform Commission, in 2024, more than 6.5 million applications were submitted for new cars through scrapping old ones or trading them in. Shanghai alone had over 5 million car ownerships by the end of 2024, making it one of the cities with the highest number of car owners in China.
Despite restrictions on vehicles with non-local license plates in Shanghai, the rules are not as stringent as in Beijing. Vehicles with non-local plates are prohibited from driving on certain roads during the day and within the inner ring road in downtown Shanghai.
The recent expansion of Shanghai’s car trade-in subsidy policy is expected to further encourage consumers to switch to electric vehicles and contribute to the city’s efforts to promote green transportation.
