Hyundai Motor joins Beijing's subsidy program to replace old cars

HONG KONG, Aug. 2 (Yonhap) -- South Korea's leading automaker Hyundai Motor Co. has agreed to participate in the Beijing municipal government's subsidy program to replace old cars with newer, energy-efficient models, government officials said Tuesday.
The announcement of Beijing's new measure comes as the Chinese automobile market has grown stagnant recently. In a bid to ease gridlock and pollution, the Chinese capital city launched a quota system on Jan. 1 to limit the issuance of new car licenses.
Hyundai Motor is among the 18 companies, along with Chang'an Ford Automobile Co., BYD Company Ltd., Chongqing Lifan Industry Co., Tianjin FAW Toyota Motor Co. and Changan Ford Mazda Engine Co., that plan to take part in the campaign to encourage drivers in Beijing to scrap old cars or sell them to buyers outside Beijing from August 2011 through December 2012.
Those who get rid of cars made in 1995 or earlier will receive subsidies that range in value from 2,500 yuan (US$390) to 14,500 yuan.
Among them, those who want to buy a new car from the 18 participating automakers will receive additional subsidies worth 2,000 yuan to 10,000 yuan.
The Beijing officials expect the new campaign will improve air quality in Beijing by eliminating 400,000 old cars and by cutting emission of nitrogen oxide by more than 10,000 tons by 2015.
The government estimates about 40 percent of all vehicles on Beijing roads do not meet China's national emissions standards.