- Shanghai now allows non-locally registered vehicles to be used to apply for trade-in subsidies of up to RMB 15,000.
- Previously, Shanghai only allowed vehicles registered in the city to apply for the subsidies.
Shanghai has expanded the coverage of the city's car trade-in subsidies, as efforts to stimulate consumption continue.
Old vehicles registered in other cities can now be used to apply for trade-in subsidies in Shanghai, according to an announcement released today by the Shanghai Commission of Commerce.
Previously, only locally registered vehicles could be used to apply for the subsidies.
Shanghai is home to the headquarters of SAIC Motor (SHA: 600104) and Nio (NYSE: NIO), as well as Tesla's (NASDAQ: TSLA) factory in China.
Between January 1 and December 31, 2025, individual consumers can receive a one-time RMB 15,000 subsidy if they purchase an electric vehicle (EV) priced at RMB 100,000 ($13,710) or above and transfer their own old cars registered elsewhere within a specified period.
The subsidy will be RMB 13,000 if they purchase a new gasoline vehicle priced at RMB 100,000 or more by replacing the old one.
Each consumer is entitled to a maximum of one car trade-in subsidy this year.
Shanghai is one of the most EV friendly of China's first tier mega cities, offering free green license plates for purely electric vehicles.
In the city, residents who register a gasoline or hybrid vehicle need to obtain a blue license plate in advance through an auction.
Shanghai holds auctions for gasoline vehicle license plates once a month, and in the latest March auction, the lowest price paid for a blue plate was RMB 94,100.
China introduced a trade-in subsidy policy for the auto sector in April 2024 and increased the amount in July last year. The initial subsidy was valid until the end of 2024.
On January 8 this year, China announced the continuation of the auto trade-in subsidy policy as a support for auto consumption.
In 2024, more than 6.5 million applications were made to buy new cars by scrapping old ones or trading them in for new ones, China's National Development and Reform Commission said at a January 8 media briefing.
Shanghai is one of China's cities with the highest number of car ownerships, more than 5 million by the end of 2024, according to data released by China's Ministry of Public Security on January 17.
Notably, due to the high price of gasoline license plates, many people chose to register a gas vehicle in another city and use it in Shanghai before EVs began to be generally accepted several years ago.
Like many other major cities, Shanghai has restrictions on travel by vehicles with non-local license plates, but they are not as strict as in Beijing.
In Shanghai, vehicles with non-local license plates are not allowed to drive on some elevated roads during the day, as well as on downtown roads within the inner ring road.
($1 = RMB 7.2921)
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