The new policy for auto replacement will be extended from May 31, 2010 to December 31, 2010. The Ministries of Finance, Commerce and Environmental Protection will jointly release a circular to make a specific deployment for the extension.

The implementation of the new policy for auto replacement has not only boosted the auto consumption but more importantly, sped up the process of the elimination of high-emission, high-pollution “yellow sticker vehicles” as well as old vehicles. Up to May 31, 2010, China had processed 127,000 auto replacement applications with the subsidy of RMB1.7 billion, and accordingly driven the consumption of new vehicles to RMB15 billion.