Scrappage Scheme to Be Revived by Chinese Government
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The Chinese scrappage program was first implemented in June of ‘09, when new car buyers were given between $450 (€360) to $900 (€720) for trading in their old and heavily polluting vehicle as a down payment for a new, less polluting one. The program ran until May 31st 2010, with the level of compensation being raised to between $730 (€586) and $2,600 (€2,090).
Last week, Chinese government officials announced that they would be reviving the scrappage scheme, in order to further increase the demand for new cars, on the world’s largest and largest growing car market. Surprisingly, the January to April period of this year has witnessed a drop in car sales by 1.3%, the worst result since the 1.6% drop of 1998.
It is unclear at the moment how the scheme is going to work, or how much money will be given per vehicle, however, officials will concentrate more on China’s rural areas, where the government will provide substantial subsidies for those wishing to trade in their used vehicles, towards the purchase of new and more fuel-efficient solutions.
Story via autonewschina.com
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