China plans to revive incentives to boost auto sales

Article by Christian A., on May 31, 2012

The Chinese government will revive financial incentives to entice consumers to trade in their passenger cars to help boost the demand in the country, a government official has confirmed. Last week, the cabinet approved the plan and currently, the involved ministries are determining the details like the types of vehicles covered and amount of state funding.

This official, who asked to be anonymous, said that the government is also undergoing feasibility studies with regards to the funding of new car purchases in rural areas. Government officials are facing rising pressure to revive consumer demand after the economy had become slower than predicted and sales declined.

In 2009, China launched a cash-for-clunkers program in response to the worldwide financial crisis, according to Autonews. The following year, the company reported 49.6 billion yuan ($7.8 billion) in new car sales. The shares of Chinese carmakers widened due to rising speculation that the government is readying to boost economic growth. SAIC Motor Corp. grew by 5.2%, the highest in four months, to 15.54 yuan in Shanghai.

Geely Automobile Holdings Ltd., Great Wall Motor Co. and Dongfeng Motor Group Co. all reported increases of over 8% in Hong Kong. The China Association of Automobile Manufacturers said that Chinese total vehicle sales decreased by 1.3% in the January-to-April period. This is its worst figure since 1998 when deliveries declined by 1.6%.

Topics: china, sales

If you liked the article, share on:

Comments

Recommended

The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
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
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