(Yicai) April 26 -- China has launched its vehicle trade-in program with individual subsidies of as much as CNY10,000 (USD1,380) on offer to stimulate consumption.

The subsidies are being offered to owners of fossil fuel cars that have Stage III emission standards and below, and new energy vehicles that were bought before April 30, 2018, according to a document jointly released by the commerce and other ministries today.

If they are traded in and a new car meeting energy-saving standards is bought, owners can get a one-time fixed subsidy through year-end. That will be CNY10,000 for eligible new NEVs, and CNY7,000 (USD965) for standard fuel cars with engines of 2.0 liters and below.

Some 1.6 million passenger cars are likely to be sold at retail in China this month, down 5.3 percent from last month and 1.5 percent from a year earlier, according to the China Passenger Car Association’s data.

The trade-in program’s costs will be shared by the central and local governments, with an average 60-40 split and regional variations. The local authorities of affluent eastern provinces will have to shoulder half, while western provinces will need to shell out 30 percent.

Editor: Tom Litting