(Yicai) June 4 -- China's central and local governments have launched a combined subsidy of CNY11.2 billion (USD1.5 billion) for vehicle trade-ins this year to promote environmental protection and car consumption.

The Ministry of Finance has issued an advance allocation of CNY6.4 billion (USD883.2 million) as the central financial subsidy for auto trade-ins in 2024, it announced on its website yesterday. In addition, local governments will provide CNY4.8 billion.

To boost consumption in China, the Ministry of Commerce and 13 other departments previously issued an action plan to promote trade-ins of consumer goods, including home appliances and vehicles.

The finance ministry also set a goal to recycle 3.78 million autos this year. The program proposed to enhance fiscal and monetary policy support, aiming to eliminate National III and below emission standard fuel passenger cars by 2025 and recycle double the number of end-of-life vehicles than last year.

Those who scrap National III and below emission standard fuel or new energy passenger cars registered before April 30, 2018, and purchase new energy vehicles can receive a CNY10,000 (USD1,380) subsidy and CNY7,000 (USD965) for fuel autos with a 2.0-liter or below engine capacity, according to the Implementation Rules for Car Trade-in Subsidy issued by the Ministry of Commerce in April.

China issued CNY6.4 billion for vehicle trade-ins from 2009 to 2011, generating CNY49.6 billion worth of new car consumption, according to a report by Citic Securities. The country's vehicle production growth rate exceeded 30 percent in 2009 and 2010.

Editor: Martin Kadiev