The Chinese government has increased subsidies to encourage the trade-in of old internal combustion engine (ICE) vehicles for new energy vehicles (NEVs). Consumers who trade in an old NEV registered before April 30, 2018, or an ICE vehicle that meets or is below China's national 3 emission standard for a new NEV will now receive a subsidy of 20,000 yuan, double the previous amount announced in May.

Additionally, a 15,000 yuan subsidy is available for those who trade in an old NEV registered before April 30, 2018, or an ICE vehicle that meets or is below China's national 3 emission standard and purchase a new ICE vehicle with a displacement below 2.0 liters.

The initiative is part of Beijing's broader plan to promote large-scale trade-ins to meet its annual economic growth target of 5%. The Ministry of Finance has allocated 6.44 billion yuan to local governments to fund these subsidies in 2024, with significant amounts designated for cities like Tianjin, Shanghai, Beijing, and Chongqing. The central government has also announced the removal of purchase restrictions for NEVs during 2024-25, with Beijing allocating 20,000 additional purchase quotas for NEVs to families without a car.

In June, China produced 1.003 million NEVs, marking a 28% increase from the previous year, with sales rising by 30% to 1.049 million units, driven by the supportive measures, including the trade-in subsidies.