Shanghai authorities yesterday began to handle applications by car owners who replace their outdated or heavily polluting vehicles for the national vehicle subsidies.

Eligible local car owners will be able to enjoy subsidies offered by the central government, ranging from 3,000 yuan (US$439) to 6,000 yuan, said Shanghai Commission of Commerce, adding that the program would further promote environment-friendly models and spur domestic demand.

Car owners who trade in their used minivans, mid and small-sized trucks and other mid-sized passenger cars for new ones from June 1 to May 31 next year will get subsidies, the commission said.

The national rebates will also be given to consumers who sell vehicles that no longer meet the government emission standards but are still within the lifespan period.

The move was part of the central government's 5 billion yuan worth of subsidies for auto replacement announced earlier this year.

The subsidies would work together with similar incentives of between 3,000 yuan and 7,500 yuan offered by the city government starting from June 1. That means the total subsidy would add up to 13,500 yuan if consumers replace their old model with a new one.

Liu Min, a commission official, doesn't expect high numbers of car owners who can enjoy both subsidies as they need to meet strict requirements.

"But two subsidies would work more effectively to get consumers to trade in used models and contribute to the city's effort to clear the air and sustain economic growth," Liu said.

After Shanghai introduced the local subsidies on June 1, about 427 car owners qualified for the rebates by last Friday. They will be able to get a 5,079 yuan subsidy on average to buy a new vehicle.

Car owners can apply for the national subsidies at 2016 Yishan Road by June 30 next year, city officials said.

(Shanghai Daily August 11, 2009)