China Offers Up To $20,000 Subsidy to Businesses Replacing Old Diesel Trucks

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Trucks on highway.

Financial subsidies of up to 140,000 yuan ($19,340) are being offered by China to companies and individuals who replace old operating trucks with new.

Tens of thousands of trucks on China’s roads fall under outdated emission standards in place before the stricter regulations were introduced in 2013. These older trucks, predominantly diesel-powered, are a major cause of air pollution due to their high energy consumption and outdated technology.

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China offers financial subsidies up to 140,000 yuan for replacing old trucks, aiming to reduce pollution and boost new truck sales.
The program runs until December 31, 2024, with funding shared between central (85%-95%) and local governments.
Despite incentives, some in the freight industry are hesitant due to potential mismatch between subsidies and resale values, alongside declining freight volumes.

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