Jun. 18 – China will extend auto replacement subsidies from May 31 to Dec. 31, the Ministry of Commerce has announced.

The implementation of the auto replacement policy aims to encourage  the elimination of high-emissions and polluting vehicles, and to stimulate automobile consumption, according to the MOC.

Consumers can receive subsidies ranging from RMB3,000 to RMB6,000 for trading their used small-and-medium-sized trucks and other types of mid-sized passenger cars for new ones. The subsidy program came out last June and was initially scheduled to end May 31, 2010.

Though May 31, 2010, China has handed-out subsidies totaling RMB1.7 billion and replaced 127,000 vehicles while boosting domestic automobile consumption by RMB15 billion.