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Fujian launches auto replacement plan

By Hu Meidong and Ding Xueping (China Daily Fujian Bureau)
Updated: 2009-08-17 18:16

The Fujian government has officially announced basic enforcement regulations for auto replacement and a corresponding subsidy program in an effort to tackle the adverse impact brought on by the international financial crisis.

New regulations state automobiles can be replaced if listed with the following criteria: light trucks and mid-sized taxis with less than eight years of use; mid and small-sized trucks and mid-sized passenger cars (excluding taxis) with less than 12 years of use, according to a joint circular issued by the Ministry of Commerce and the Ministry of Finance.

Owners must sell and deliver their qualified vehicles to designated enterprises engaged in recovering and dismantling and buy a new one between June 1, 2009 and May 31, 2010 in order to receive subsidies. The subsidies, ranging from 3,000 yuan to 6,000 yuan, will be paid out within 15 working days.

The Fujian government has named 11 recycling and dismantling companies in nine cities and regions which have reclaim stations in urban areas and branch stations in 34 counties, including Changle, Lianjiang and Pingtan.

“Auto replacement is a very effective stimulus to China’s domestic demand, especially consumption needs, [and] employment will be largely expanded and stabilized,” says Wang Hua, an official from the Fujian provincial Economic and Commercial Committee. “New cars, which are more energy-saving than old ones, can help to improve energy efficiency and reduce environmental pollution.”