China Revises Old Vehicle Subsidy Policy, Impacting Affordable Brands

New Policy Details

China has revised its old vehicle subsidy policy, offering a rebate of 12% to 20,000 yuan (approximately Rp 47.7 million) for customers who purchase new energy vehicles, including electric and hybrid cars, and scrap their old petrol or electric vehicles registered before 2019 ¹

. This move is expected to reduce the increase in new vehicle sales next year, potentially affecting manufacturers like BYD Co.

Impact on Manufacturers

The revised policy may impact sales of affordable brands like BYD Co., as the rebate is only applicable to customers who purchase new energy vehicles and scrap their old vehicles ¹

. This could lead to a decrease in sales for manufacturers that rely on the old vehicle subsidy policy.