Shanghai subsidies heavily
From now until the end of December, Shanghai (China) will implement a subsidy program of more than 2,000 USD for people to exchange old cars for new electric cars worth over 6,000 USD. At the same time, a subsidy of 1,500 USD will also be applied to people to exchange old cars for fuel-efficient cars that meet National VIB emission standards. This policy not only stimulates the consumption of electric cars but also contributes to reducing environmental pollution and improving urban air quality.
Shanghai also offers subsidies for scrapping old cars and buying new ones. For example, people scrapping old cars that meet certain conditions will receive 20,000 yuan (about $2,800) if they buy new-energy vehicles and 15,000 yuan (about $2,100) if they buy gasoline-powered cars with engine displacements below 2.0 liters.
These measures have shown positive results, with electric vehicle sales in Shanghai increasing sharply in recent months, while the number of old vehicles that do not meet emission standards has decreased significantly. This not only helps improve the living environment but also lays the foundation for sustainable development of the transportation industry.
VinFast Pioneer in supporting green transformation in Vietnam
In Vietnam, VinFast has emerged as a pioneer in supporting people to switch from gasoline-powered cars to electric cars. Since November 1, 2024, VinFast has cooperated with partner FGF to launch the "Trade-in - Trade-in" program with many special incentives. FGF supports customers to sell used cars at the right market price, quickly and easily, while VinFast offers incentive packages of up to 120 million VND when customers buy electric cars VF 7, VF 8 and VF 9.
For VinFast gasoline cars, customers can receive additional incentives ranging from VND30 million to VND120 million depending on the car model and the form of leasing or purchasing the battery. For other internal combustion engine cars, the incentives range from VND15 million to VND80 million. These policies significantly reduce conversion costs, creating a great incentive for customers to participate in the green transition.
VinFast also applies a large incentive program with a conversion value of up to 463 million VND. With an expanding partner network and convenient procedures, VinFast and FGF are gradually breaking down psychological and financial barriers to encourage consumers to switch to electric vehicles.
Looking from the world to Vietnam, the future of electric vehicles
Policies to encourage people to trade in old cars for new electric cars, such as in Shanghai or VinFast, not only bring environmental benefits but also contribute to boosting the economy. Financial support for people to trade in old cars not only reduces the cost burden but also increases purchasing power, stimulating the strong development of the electric car market.
However, for this policy to be effective in the long term, there needs to be synchronous coordination between businesses, the government and the community. In Vietnam, in addition to VinFast implementing incentive policies, the government also needs to build more comprehensive support mechanisms, such as exempting import taxes on electric vehicle components, developing charging station infrastructure and increasing propaganda about the benefits of electric vehicles. In general, Shanghai and VinFast are typical models of how to apply the policy of encouraging the exchange of old vehicles for new ones. These steps not only open up a sustainable future for the transportation industry but also contribute to environmental protection, towards the goal of global green development.
