Many places have temporarily suspended the subsidies for car replacement. Staff: it may be reopened in the second half of the year.

According to Dahe Daily, recently, cities like Zhengzhou, Luoyang, Chongqing, Xinjiang, Shenyang, etc. successively issued notices announcing the suspension of acceptance of applications for car replacement subsidy programs. The suspension of the car replacement subsidy policies has also triggered a series of chain reactions. Some consumers who were planning to buy a car accelerated their selling, viewing, and ordering processes before the local subsidy deadline. As for users who have not yet purchased a car, the suspension of subsidies may also delay their car purchasing plans, as the residual value of their old cars is already low, and whether they can benefit from the subsidy affects the residual value of their old cars significantly. From the perspective of the automotive industry, car manufacturers that have relied on subsidies to attract consumers will need to readjust their marketing strategies. As for the issue of whether the subsidies will be cancelled, relevant personnel have stated to the media that the subsidy suspension is only temporary and will be re-opened in the second half of the year. Some media have also learned that a new round of subsidies is expected to be launched at the end of July. According to the deployment of the State Council, a total of 300 billion yuan of national subsidy funds will be arranged by the central government by 2025 through the issuance of ultra-long-term special national bonds. Local finances will need to provide 10% in matching funds for the national subsidy funds, which is 300 billion yuan.