Shenzhen: Promoting trade-in of automobiles, home appliances, and communication equipment products accounts for more than 24% in 2024

The Zhitong Finance App learned that on May 27, the Shenzhen Municipal Bureau of Commerce issued the “Shenzhen Action Plan to Promote Trade-In of Consumer Goods”, which aims to increase the total retail sales rate of consumer goods by more than 7% in 2024, strive to increase the annual retail sales volume of cars above the limit by more than 10 billion yuan, add more than 30 new car sales companies, and promote the trade-in of automobiles, home appliances, and communication equipment products to account for more than 24%.

Specific measures include expanding consumption of new energy vehicles. Abolish social security restrictions on people not registered with Shenzhen to apply for incremental indicators for new energy vehicles. Relaxation of the conditions for individuals with only 1 car registered in Shenzhen under their name to apply for incremental hybrid car indicators. Implement the continuation and optimization of NEV vehicle purchase tax relief policies.

The original text is as follows:

Notice of the Shenzhen Municipal Bureau of Commerce on Issuing the “Shenzhen Action Plan to Promote Trade-In of Consumer Goods”

All relevant units:

The “Shenzhen Action Plan to Promote Trade-in of Consumer Goods” has been approved by the municipal government and is now being issued. Please carefully organize and implement it. If any problems are encountered during implementation, please report them to the Municipal Bureau of Commerce.

Shenzhen Municipal Bureau of Commerce

May 24, 2024

Shenzhen's Action Plan to Promote Consumer Goods Trade-In

In order to implement the decisions and arrangements of the Party Central Committee and the State Council to promote large-scale equipment renewal and consumer goods trade-in and the work requirements of the provincial committee and provincial government, promote the trade-in of consumer goods such as automobiles and home appliances in accordance with the work arrangements of the municipal party committee and municipal government, promote consumption upgrading, accelerate the construction of consumer centers with significant global influence, and take into account the actual situation of trade-in of consumer goods such as automobiles and home appliances in our city, the following action plans have been formulated:

I. Work goals

Adhere to market-oriented and government-guided principles, and focus on traditional durable consumer goods such as automobiles and home appliances, so as to drive higher standards of technology, energy consumption, emissions, etc., and promote the trade-in of consumer goods in our city. Promote the total retail sales rate of social consumer goods by more than 7% in 2024, strive to increase retail sales of cars above the limit by more than 10 billion yuan throughout the year, add more than 30 new automobile sales companies to the warehouse, and promote the trade-in of automobiles, home appliances, and communication equipment products to account for more than 24%.

II. Work measures

(1) Support the purchase and use of new energy vehicles and increase the exchange rate of new energy vehicles

1. Increase consumption of new energy vehicles. Abolish social security restrictions on people not registered with Shenzhen to apply for incremental indicators for new energy vehicles. Relaxation of the conditions for individuals with only 1 car registered in Shenzhen under their name to apply for incremental hybrid car indicators. Implement the continuation and optimization of NEV vehicle purchase tax relief policies. (Responsible units: Municipal Transportation Bureau, Municipal Bureau of Commerce, Municipal Bureau of Industry and Information Technology, Municipal Finance Bureau, Shenzhen Municipal Taxation Bureau)

2. Improve supporting facilities for new energy vehicles. Promote the construction of an “overcharged city” and build an overcharging facility service system with world-leading technology and diverse coverage of scenarios. Promote a further increase in the number of charging stations at express charging stations in expressway service areas, alleviate problems such as charging difficulties and parking difficulties, and further enhance the charging guarantee capacity of new energy vehicles in our city. Reduce electricity costs for new energy vehicles and promote the improvement of social maintenance service capabilities for new energy vehicles. (Responsible units: Municipal Development and Reform Commission, Municipal Bureau of Industry and Information Technology, Municipal Transportation Bureau)

(2) Make every effort to promote automobile modernization and promote the upgrading of automobile consumption

3. Implement trade-in car purchase subsidies . Implement a differentiated subsidy policy for “trade-in” automobiles, and in accordance with the principle of classification, urban areas work together to increase support for the purchase of new cars. Organize and launch an automobile consumer festival to encourage automobile manufacturers, brands, distributors, financial institutions, etc. to add supporting benefits for “trade-in”. <大鹏新区、深汕特别合作区，下同>( Responsible units: Municipal Bureau of Commerce, Municipal Bureau of Industry and Information Technology, Municipal Transportation Bureau, Municipal Public Security Bureau, Traffic Police Bureau, all districts)

4. Accelerate the decommissioning of old cars. Make good use of the Ministry of Commerce's end-of-life vehicle renewal subsidy policy, and comprehensively use a combination of administrative measures, traffic restrictions, etc., to eliminate diesel trucks, passenger cars, and non-standard commercial vehicles operating under national emission standards according to law and regulations. By 2025, passenger cars with national emission standards of 3 and below will be basically phased out. Encourage power battery recycling enterprises and new energy vehicle manufacturers that are in a position to do so to simultaneously build standardized power battery recycling service outlets through self-construction, co-construction, and authorization, etc., to guide power batteries into standardized recycling enterprises. (Responsible units: Municipal Transportation Bureau, Municipal Bureau of Commerce, Municipal Bureau of Ecology and Environment, Municipal Public Security and Traffic Police Bureau, Municipal Bureau of Industry and Information Technology)

(3) Accelerate the cultivation of the used car market and increase the integrated scale of used car distribution

5. Unblock used car distribution channels. Implement used car turnover indicators, implement policies such as implementing separate endorsement management and issuing temporary license plates when applying for small non-operating used car transfer registration, and that used cars purchased by automobile sales companies and used for sale do not occupy license plate indicators. Companies are allowed to issue a unified invoice for used car sales in reverse and use this to complete the transfer registration procedure. Taxpayers engaged in used car dealership are subject to VAT at a reduced rate of 0.5% when selling used cars they have acquired. (Responsible units: Municipal Bureau of Commerce, Municipal Transportation Bureau, Municipal Public Security Bureau Traffic Police Bureau, Shenzhen Municipal Taxation Bureau)

6. Support the large-scale development of used car distribution. Encourage large-scale and branded development of used car dealerships, and cultivate and expand a number of leading enterprises in the used car industry. Support used car distributors to upgrade regulations, implement used car distribution incentive policies, and reward eligible companies for used car sales. Promote the external circulation of used cars in our city, expand the scale of used car retail, and build a well-known domestic used car trading center. Strengthen the supervision and management of used car market players, guide them to strengthen industry self-discipline, and create a fair, just and open market transaction environment. (Responsible unit: Municipal Bureau of Commerce, Municipal Public Security Bureau, Traffic Police Bureau)

(4) Support used car companies to explore overseas markets and promote used car exports

7. Expand the number of used car exporters with high energy levels. Explore, introduce and cultivate a wide range of potential used car export companies, promote stronger cooperation among automobile dealers, supply chain companies, and state-owned trading enterprises that are in a position to do so, and collaborate to expand overseas used car markets. Organize and carry out the certification review of used car export qualification enterprises, promote more than 20 enterprises to obtain used car export business qualifications, and form a cluster of used car export enterprises. (Responsible units: Municipal Bureau of Commerce, Municipal State-owned Assets Administration Commission, Qianhai Administration, all districts)

8. Accelerate the efficiency of used car export procedures. Open a fast track for used car export license processing, promote the acceptance of used car transfers awaiting export business to achieve full coverage of the city's vehicle administration offices and motor vehicle registration service stations in the used car trading market, and support export enterprises to handle used car export business in batches. Carry out export tax rebate business guidance, implement the integrated national customs clearance model and “one batch, one license” preferential measures for used car exports, speed up the efficiency of vehicle inspection and disposal, and increase the scale of exports. (Responsible unit: Municipal Bureau of Commerce, Municipal Public Security Bureau, Traffic Police Bureau, Shenzhen Customs)

(5) Promoting trade-in consumer electronics and promoting the consumption of green smart appliances

9. Promote the renewal and consumption of consumer electronics and green appliances. The city cooperates to subsidize the purchase of eligible consumer electronics and household appliances. Combining the various consumption scenarios of the “2024 Consumption Promotion Year”, it coordinates online and offline consumption channels around popular products such as smartphones, tablets, and smart wearables, and organizes market subsidies for manufacturers, sales companies, e-commerce platforms, financial institutions, payment institutions, etc. to carry out trade-in. Support the establishment of smart home appliance experience stores and host special home appliance debut events. Support home appliance sales companies and manufacturers to organize promotional activities such as the home appliance replacement season to guide consumers to buy smart home appliances such as smart rice cookers and ultra-high-definition TVs. (Responsible units: Municipal Bureau of Commerce, Municipal Bureau of Industry and Information Technology, all districts)

10. Clear channels for recycling and reuse of used household appliances and electronic products. Integrate enterprise service, sales, logistics, supply chain, design, manufacturing, procurement, etc., and establish a multi-path waste home appliance recycling model and reverse logistics path with distribution, installation, maintenance and other businesses to create a “green ecological recycling design+home appliance production+offline sales channel+recycling platform+green recycling” full life cycle industrial chain for home appliance recycling. Guide express logistics companies to reduce the cost of personal delivery and recycling of used household appliances, and establish a standardized recycling system for waste home appliance holders - recycling outlets - transit stations - processing enterprises. (Responsible units: Municipal Bureau of Commerce, Municipal Bureau of Industry and Information Technology, Municipal Transportation Bureau, Municipal Post Administration)

(6) Improve home quality consumption and support home renewal and transformation to adapt to aging

11. Guide the upgrading and transformation of home quality. Organize and carry out home renovation activities to support residents in carrying out renovation and partial upgrading of old houses; encourage decoration companies to renovate old neighborhoods and urban villages to create model rooms for old house decoration and partial renovation. Actively promote the intelligent transformation of the whole house in the fields of commercial housing, guaranteed housing, hotels, office buildings, etc., and support open source Hongmeng's native applications. Industry exhibitions such as luxury goods fairs are regularly held to promote smart home products such as smart door locks and smart cameras. (Responsible units: Municipal Housing and Construction Bureau, Municipal Bureau of Industry and Information Technology, Municipal Bureau of Commerce, Municipal Bureau of Culture, Radio, Television, Tourism and Sports, Municipal State-owned Assets Administration Commission)

12. Support the transformation of homes to adapt to aging. Implement standards for the transformation of families to adapt to aging, encourage eligible families to update and improve facilities and equipment for life care, safety protection, etc., promote the application of intelligent nursing robots and home service robots, and support social forces to launch special products such as lifestyle care, walking, rehabilitation and care for the elderly. (Responsible units: Municipal Civil Affairs Bureau, Municipal Health Commission, Municipal State-owned Assets Administration Commission, Municipal Bureau of Industry and Information Technology)

III. Working mechanism

(1) Raise ideological awareness. All relevant units should raise their political standing, fully understand the importance and importance of carrying out trade-in of consumer goods, strengthen their responsibilities, clarify responsible personnel, formulate detailed promotion plans and work measures, and ensure that all key tasks are implemented in practice.

(2) Strengthen overall coordination. All districts (Dapeng New Area, Shenzhen-Shantou Special Cooperation Zone) and relevant units should further strengthen their overall awareness, firmly establish the “one game of chess” idea, strengthen urban linkage, departmental coordination and information sharing, and make full use of location advantages and characteristics under the unified arrangement and deployment of the entire city to ensure that policy benefits are maximized and benefited the largest number of consumers.

(3) Optimizing policy design. Give full play to the role of the existing policy system, sort out and summarize the difficulties and problems in the implementation process in a timely manner, study further optimization and improvement, and continuously improve the enterprise and consumer experience.

(4) Strengthen publicity and promotion. Make full use of online and offline channels such as bus advertisements, news media, and the Internet to publicize and promote the importance of automobile consumption promotion policies, energy saving and emission reduction for new energy vehicles, trade-in of consumer goods, and green smart consumption, etc., to create a good consumer atmosphere for trading in consumer goods.

(5) Strengthen promotion mechanisms. Municipal departments and district governments will use the action plan to promote the trade-in of consumer goods as an important gripper to promote high-quality economic and social development, further strengthen promotion mechanisms, establish work desk accounts, list and project key tasks, clarify tasks, road maps, timetables and responsible persons, and push for implementation of various tasks.

This article was selected from the official website of the Shenzhen Municipal Bureau of Commerce. Zhitong Finance Editor: Chen Xiaoyi.