China ends subsidies for rural vehicle sales

Article by Christian A., on January 5, 2011

The Chinese government’s subsidies for vehicles sales in rural areas are over, as of Jan. 1, according to the Ministry of Finance. These incentives include those for small cars and trucks. This marks the end of a policy that began in March 2009 to boost automobile demand when the global recession was at its worst point.

Days before this announcement, the government also called for a halt in incentives for buyers of small vehicles. China also announced that the subsidies to buyers of fuel-efficient cars have been extended.

Analysts said that these changes will affect major mini-vehicle makers, such as Chongqing Changan Automobile Co Ltd and GM-SAIC-Wuling, since minivans and pickup trucks are popular in rural areas.

The analysts also think that many domestic and foreign players, such as GM, Changan and Ford Motor Co., will still benefit from Beijing's handouts for fuel-saving models.

GM-SAIC-Wuling is General Motors Co.'s three-way venture with SAIC Motor Corp Ltd. and Wuling Auto in southern China. On Dec. 28, the government said that it will raise the sales tax on vehicles with engines of 1.6 liters or smaller to 10% from its current 7.5%.

Last year, the tax was at 5%. China's total vehicle sales rose by 46%. Contributing to the sales improvement are the various government policies, which include a consumption-tax rebate, subsidies for rural car buyers and incentives of up to 18,000 yuan to trade in older models. [via autonews - sub. required]

Topics: china, sales, incentives

If you liked the article, share on:

Comments

Recommended

New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Porsche definitely adores variety. You’ll see what we mean if you browse through the official company's website that shows a plethora of various 911 models. And now, the German marque...
by - June 23, 2017
2018 Ford Expedition is on its way to the market, and will be arriving at dealerships this fall. The all-new SUV will come with a new design, new EcoBoost engine,...
by - June 23, 2017
The 2018 Porsche 911 GT2 RS that made its debut not so long ago at the E3 video game expo in Los Angeles has already been sold out according to...
by - June 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries