Shanghai extends subsidy program to promote greener vehicles

Shanghai is extending subsidies to vehicles owners who want to replace their high-polluting vehicles as the city continues to promote better fuel efficiency, the Shanghai Municipal Commission of Commerce said. The city announced the subsidies to encourage consumers to buy vehicles that burn less fuel and emit fewer pollutants from June 1, 2009, to April 30, 2010. The subsidies will be extended until the end of this year. Environmentally minded Shanghai motorists will receive from 3,000 yuan (US$439) to a maximum of 7,500 yuan (US$1,097) for trading in outdated and high-polluting vehicles. Those vehicles to be abandoned include mini-vans, light commercial vehicles and heavy-duty trucks that failed to meet the nation’s first generation emission standard. By April 30, more than 14,000 applications had been received in the city. With the government handout totaling about 90 million yuan (US$13.17 million), the scheme led to vehicle sales valued at 2.3 billion yuan (US$336.6 million). Under the revised plan, consumers can file subsidy applications until January 31, 2011. (May 21, 2010)