China extends vehicle scrappage scheme, increases maximum bonus

China has announced the extension of the country's vehicle scrappage scheme for 2010. Motorists will be able to trade in cars that are considered "highly pollutant" and receive a state subsidy worth between 5,000 yuan (about $730) and 18,000 yuan ($2,600), which is a significant increase over last year's maximum of 6,000 yuan. A "highly polluting" car is either a gasoline car that doesn't qualify for the first tier of Chinese emission regulations (e.g., early VW Santanas) or diesels that don't qualify for the third tier. Although dressed in green colors, this policy is really aimed directly at increasing sales in the Chinese auto market. The plan was allocated 5 billion yuan this year, compared to 1 billion last year.

[Source: Gasgoo]

Share This Photo X