Since the beginning of the year, the average number of subsidy applications and subsidy handouts registered daily has grown by over 200 percent as compared to the figure registered before the introduction of the incentive scheme. However, the ministry failed to provide the number of applications or amount of subsidies given.
Starting from February 12, over 23,000 units have been sold through the program. These are worth over $483.2 million.
According to Xinhua, starting from January 1, the vehicles equipped with 1.6 liter engines or smaller benefit from a 7.5 percent purchase tax, a figure 10 percent smaller than the one from 2008 and before, but 5 percent higher than the one from 2009. In addition to that, the Chinese scrappage scheme for 2010 offers subsidies between $732 and $2,600. Before January 1 2010, the program’s subsidies only reached figures between $440 and $880. In 2009, buyers could only choose one of these two, while this year they can be combined.
In 2009, China became the world’s largest automotive market, surpassing the U.S. for the first time in history. China also became the world’s No. 1 car-producing country last year. As a consequence, many of the top global automakers have modified their strategies, placing the Chinese market on top of their priorities.