Shenzhen Provides Up to $1,370 in Subsidies to Boost New Energy Vehicle Purchases

Shenzhen, a mega-city in southern China, has introduced a new policy to promote the purchase of New Energy Vehicles (NEVs). According to a document released today on boosting consumption, residents of Shenzhen can receive a subsidy of up to RMB 10,000 ($1,370) if they scrap or move out cars with China Ⅳ or lower emission standards and buy an NEV before the end of this year. This subsidy is additional and does not affect residents’ entitlement to other available subsidies.

Shenzhen, where BYD is headquartered, also encourages the use of new or clean energy for tourist passenger vehicles, gardening vehicles, and mechanical equipment. Companies can receive a subsidy of up to RMB 50,000 per vehicle when purchasing eligible new energy tourism passenger vehicles, new energy gardening operation vehicles, and mechanical equipment.

The city will promote the replacement of fuel-powered official vehicles, police vehicles, and vehicles used by state-owned enterprises with NEVs at the time of scrapping. NEVs in China include battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and fuel cell vehicles.

Shenzhen also plans to increase infrastructure development, aiming to build a total of 450,000 charging piles by the end of 2024.

A similar policy was issued in Shanghai on May 21, 2022. Residents there received a subsidy of RMB 10,000 per vehicle if they purchased a pure electric vehicle when scrapping or transferring out their old vehicles. This policy was initially set to expire on December 31, 2022 but was extended to June 30 this year and then further extended to December 31, 2023. Shanghai is home to Nio’s global headquarters and Tesla’s China factory.