(Yicai) April 14 -- Shanghai has expanded the scope of its trade-in vehicle program to include used cars with license plates from outside of the city, with industry professionals predicting that more cities are likely to take a similar step to bolster auto sales.

Buyers of new energy vehicles or fossil fuel-powered cars priced at over CNY100,000 (USD13,685) who trade in their out-of-town autos before year-end will get a one-time subsidy of CNY15,000 and CNY13,000 (USD2,500 and USD1,780), respectively, matching the incentives for Shanghai-plated cars, the city’s commerce commission said on April 12.

Some regions of China relaxed the plate restrictions for their trade-in schemes last year. But more local governments are expected to do so after Shanghai’s move, Lang Xuehong, deputy secretary-general of the China Automobile Dealers Association, told Yicai.

China introduced a trade-in subsidy policy for consumer goods last year, allocating funds from the sale of CNY150 billion (USD20.5 billion) of ultra-long special treasury bonds to support the initiative and equipment upgrades.

Several local governments, including Shanghai, then began to offer additional subsidies to further stimulate local demand, with the amount and scope of their policies gradually expanding this year.

Last year, more than 2.92 million vehicles were scrapped and replaced, while over 3.7 million were replaced and upgraded, driving sales to more than CNY920 billion (USD135.1 billion), according to data from the China Association of Automobile Manufacturers.

This year, the government has doubled its funding for equipment upgrades and consumer goods trade-in programs to CNY300 billion, a move expected to further boost market activity, Lang said.

More than 2.2 million applications to trade-in cars were filed in China this year as of April 10, according to data released by the commerce ministry today.

Editors: Dou Shicong, Futura Costaglione