The policy was first released in Shanghai last May and was valid until the end of 2022.
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While China's state subsidies for new energy vehicle (NEV) purchases expired at the end of 2022, some local government subsidies remain in place, and some that have expired have been renewed.
In an action plan released today to stabilize economic growth, the Shanghai government announced that the city will promote the consumption of products including cars and home appliances and will renew trade-in subsidies that encourage the purchase of NEVs.
Individual consumers who scrap or transfer their Shanghai-registered vehicles and purchase purely electric vehicles by June 30, 2023, will receive a financial subsidy of 10,000 yuan ($1,500) per vehicle.
The overall action plan to stabilize the economy will come into effect on 1 February and is valid until 31 December 2023.
Shanghai first began offering the subsidy in its action plan to revive the economy, released on May 21, 2022, and it expired on December 31, 2022.
In 2022, China's state-level support for the NEV industry included purchase subsidies, which expired at the end of last year and have not been renewed, and purchase tax exemptions, which have been renewed until the end of 2023.
While state subsidies for NEV purchases have not been renewed, many municipalities have renewed their subsidies to boost local economies.
In addition to the trade-in subsidies, Shanghai's plan released today also mentioned exemption from vehicle purchase tax for pure electric vehicles, plug-in hybrid vehicles and fuel cell vehicles with a buying date between January 1 and December 31, 2023. This is in line with national policy.
Shanghai, one of China's most supportive cities for the NEV industry, is home to Nio's global headquarters as well as Tesla's factory in China.
On November 30, Nio saw its 100th battery swap station in Shanghai go live, and the network officially completed its initial coverage of all districts in the city.
In Shanghai, Nio's battery swap stations have served a cumulative total of 41,866 vehicle owners, Nio said at the time.
In 2021, Nio had the No. 1 market share of 23 percent of all fuel and electric SUVs priced over RMB 350,000 in Shanghai, William Li, the company's founder, chairman and CEO, said during a quarterly report call on March 25, 2022.
On January 1, Nio opened a new delivery center in Shanghai, the largest it has in the world, with the capacity to deliver up to 200 vehicles in a single day.
Shanghai was offering free license plates to all consumers who purchase NEVs, including plug-in hybrids, in 2022.
For consumers wishing to register a conventional internal combustion engine vehicle in Shanghai, they will need to obtain a license plate in advance through a bidding process, with the successful candidate paying more than RMB 90,000 for the plate.
Beginning in 2023, Shanghai no longer continues to offer free license plates for plug-in hybrid models, and the benefit will be limited to consumers who purchase purely electric vehicles.
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