According to Xinhua News Agency, in order to implement the plan for adjusting and reinvigorating automotive industry, the Central Government will further intensify efforts to subsidize replacement of obsolete and oil cars. Recently, the Ministry of Finance has, in conjunction with the Ministry of Commerce, made the announcement concerning the subsidy for replacing obsolete and oil cars in 2009. Compared with the previous subsidy policies, 2009 subsidy policy extends the coverage of subsidy and further raise the subsidy standard. It is expected that the Central Government will increase the fund to 0.1 billion yuan for subsidizing retirement of obsolete and oil cars in 2009.

According to the announcement, subsidy standard for rural passenger vehicles delivered to the enterprises for recovering obsolete and oil cars during January 1 – December 31, 2009 and registered during January 1, 2001 – December 31, 2005 being more than 4.8m (4.8m inclusive) and less than 7.5m in length is RMB 10,000 per vehicle.