Shenzhen has introduced a new package of incentives to further boost consumer spending on vehicles, consumer electronics, household appliances, outdoor culture, tourism and sports activities, and bulk commodities, according to a notice published by six government departments Thursday.
The policies are intended to stimulate consumption potential and boost consumer confidence, the notice said.
The move comes after the State Council said Monday that cities should set their own support measures for vehicle purchases and the country will reduce passenger vehicle purchase taxes by 60 billion yuan (US$8.912 billion) nationwide in phases.
Individual consumers will be granted subsidies of no more than 10,000 yuan per vehicle if they purchase new energy vehicles (NEVs) eligible for the incentives and get them registered in Shenzhen.
The city will raise license plate quotas for fuel-powered cars by 20,000 and those who win the lottery and choose to buy NEVs will be offered subsidies of up to 20,000 yuan per vehicle.
Restrictions on hybrid electric vehicle license plate applications will be relaxed. Residents who have already registered one vehicle in Shenzhen are also allowed to buy a hybrid vehicle and apply for a corresponding license plate.
Companies and self-employed individuals who purchase new or clean energy vehicles for tourist transport use will receive subsidies up to 50,000 yuan for each vehicle.
Shenzhen-based NEV manufacturing giant BYD expressed its confidence that there will be an NEV sales boom brought about by the stimulus package.
“Vehicle consumption is a major buttress of the consumer market. Shenzhen has quickly responded and provided a strong policy support to answer the country’s call to boost consumption,” a company employee who declined to be named told Shenzhen Daily on Thursday. “The measures will help maintain consumer spending growth in NEVs.”
BYD reported a surge in NEV sales in April, with 106,042 units sold, up by 313.2% year on year, company data showed.
For local home appliance buyers, they will be given a subsidy that is 15% of the retail price, up to a maximum of 2,000 yuan, per person for purchasing TV sets, air conditioners, refrigerators, washing machines, kitchen appliances, and small household appliances from May to August.
The 15% subsidy policy will also apply to electronic product consumption, including mobile phones, computers, earphones, smart home appliances and fitness equipment between May and August.