Save human vehicles more humane details

In the third round of "policy support" for commercial vehicles, the "new for trade" subsidy has been increased by 4 billion yuan to make the process more consumer-friendly. More details can be found at http://auto.nfdaily.cn. The increase from 1 billion to 5 billion yuan is a significant move that offers substantial benefits. As one industry insider, Dong Zean, head of GAC Hino Sales, put it: “We’ve been waiting for months for this.” According to the State Council’s executive meeting decision, some commercial vehicle owners can now receive a subsidy of up to the amount of the original vehicle’s purchase tax when they replace their old vehicle with a new one of the same type, provided they have the scrapping certificate. In the first four months of this year, commercial vehicle sales saw a strong rebound, and the new measures are expected to further boost the market. However, many car manufacturers are calling for clearer guidelines and simpler procedures to ensure that policies like “retirement replacement” and “cars to the countryside” are more effective and widely accessible. The policy is expected to quickly stimulate sales. This year, the central government will raise the retirement subsidy for old cars from 1 billion to 5 billion yuan. Additionally, the scope of the “old-to-new replacement” program will expand, offering higher subsidies for medium, light, and micro trucks, as well as certain medium-sized passenger vehicles that meet specific service life criteria. Vehicles that are scrapped early or fail to meet national emission standards will also qualify for subsidies, not exceeding the single vehicle purchase tax for similar models. Dong Zean of GAC Hino believes the increased subsidy will attract more buyers, boosting commercial vehicle sales in the short term. Local dealers also plan to take advantage of the policy by ramping up marketing efforts. Despite the positive outlook, there is a need for better implementation. Analyst Jia Xinguang pointed out that previous government efforts in retiring old vehicles were insufficient. With about 26 million commercial vehicles on the road and only 300,000 to 500,000 scrapped annually, the scrap rate is just around 2%. This means millions of older, less efficient vehicles remain in use. Increasing the retirement incentive could help reduce pollution, improve safety, and enhance transportation efficiency. Some car companies are urging faster implementation of the subsidies and more user-friendly processes. One company representative said, “The current subsidy system isn’t very convenient for consumers.” They hope that the scrapping and replacement program could be integrated into the purchasing process, similar to how passenger car tax relief works. This marks the third time the government has introduced supportive measures for commercial vehicles, following the “cars go to the countryside” initiative in March and the increased retirement subsidy support in April. The focus on commercial vehicles is due to their sluggish performance compared to passenger cars. While passenger car sales hit record highs in the first four months of the year, commercial vehicle sales have been declining. According to the China Association of Automobile Manufacturers, truck production and sales rose slightly, but semi-trailer tractors and non-integrated trucks saw sharp declines. With stronger policy support, Jia Xinguang believes commercial vehicle sales will see a significant boost.

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