Like most other countries with native automobile industries, China has implemented a Cash-For-Clunkers-style used car scapping program. Interestingly, the Chinese government is also subsidizing the replacement of old, inefficient home appliances for newer units as well, but that's a story for another site. The program was unveiled last March, but was only available for buyers from rural areas looking to replace their old minivans and light trucks. Now, the scheme has been expanded and covers a number of large metropolitan areas at a cost of 5 billion yuan ($732 million).

According to a report on Gasgoo, though, the most efficient cars – those with engines smaller than 1.6-liters – have been excluded from the scrapping program. Why? Back in January, in an attempt to spur sales of small cars, the Chinese government started offering tax cuts of up to 10 percent for small-displacement vehicles, and it's apparently believed that existing subsidy is sufficient for this class of vehicles.

[Source: Gasgoo]

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