CRI听力:Subsidies for Old Car Sales

Starting this month, car owners in Beijing who have vehicles over six years old can receive a government subsidy if they sell or write off the value of the cars. The owners will receive another subsidy from auto manufacturers if they replace their old vehicles with new ones.

The amount of the subsidy is based on six factors, including car model, discharge capacity and condition. The subsidies range from 2,500 yuan to 14,500 yuan with an average payment of 4,000 yuan.

A person who replaces his 200-thousand yuan car with a new one, for example, can spend nearly 10-thousand yuan less if he receives a 5-thousand-yuan government subsidy and another 5-thousand from an auto manufacturer.

Data from the Beijing Environmental Protection Bureau indicate that cars that have been on the road for over eight years account for more than a quarter of Beijing's total number of vehicles, but produce 60 percent of total emissions discharge. That is to say, older vehicles are the main source of motor vehicle pollution.

Du Shaozhong, Deputy Director of the Beijing Environmental Protection Bureau, says more than 2 million vehicles on Beijing's roads are eligible for the older vehicle-elimination campaign.

"This is a new measure that the Beijing municipal government has taken to reduce the number of heavy-duty vehicles and small passenger cars which meet national grade-1 and 2 discharge standards, because we eliminated highly polluting vehicles in 1999 and 2000."

After the cars have been sold or their value written off, the owners can keep the license plate and log on a third-party online platform to apply for the subsidy. They can also buy a new car on the online platforms of 16 designated auto manufacturers participating in the campaign, including Beijing Hyundai, FAW Toyota and Chery.

Zhang Jian, General Finance Manager of Beijing Hyundai Auto Company, says:

"All five brands of our seven subsidiary companies are participating in this sales campaign, and we provide no less than 4,000 yuan for each new car purchase."

Du Shaozhong of the Beijing Environmental Protection Bureau says the new regulation has three benefits.

"This regulation can help promote the environment and benefit car owners. At the same time, it will promote the development of auto companies."

Industry analysts also say they hope the new program will stimulate Beijing's slumping auto market.

For CRI, I'm Zhong Qiu.