BUSINESS Policies released to stimulate auto market recovery

BUSINESS

Policies released to stimulate auto market recovery

China Daily

17:51, March 30, 2020

Visitors look at vehicles at Harbin Autumn Automobile Exhibition at Harbin, Heilongjiang province on Nov 19, 2019. (Photo: Xinhua)

Faced with sales severely affected by the novel coronavirus outbreak, The Chinese government launched multiple favorable policies to stabilize automobile sector and accelerate the market recovery, according to The Economic Observer.

Local governments has been encouraged to put forward incentive measures for auto industry, including subsidizing new energy vehicle buyers, loosening vehicle purchase restrictions and introducing auto replacement scheme.

Nanchang, in eastern Jiangxi province, released guideline on March 25 that buyers will be subsidized by 1,000 yuan per car for purchasing new vehicles in the city during the epidemic period.

Guangzhou government will also offer 10,000 yuan subsidy to new energy vehicle buyers. For consumers trading in second-hand cars, or purchasing new cars in compliance with the "China VI" vehicle emission standards, each will get 3,000 yuan subsidy.

Ningbo, in Zhejiang province, announced that from March 25 to Sept 30, buyers can enjoy a 5,000 yuan discount for purchasing local-produced passenger vehicles.

Besides, the capital city of Zhejiang, Hangzhou authority decided to further increase the number of new car plates, with 20,000 quotas available to buyers in 2020.

As of today, at least nine cities in five provinces across the country have introduced policies to stimulate automobiles consumption.

Automobile industry was seriously stricken by the virus outbreak in the first two month of 2020, with sales volume reaching 2.24 million unites, dropping 42 percent from the previous year. In February, the sales declined 83.9 percent year-on-year, with only 310,000 vehicles sold, according to the statistics from China Association of Automobile Manufactures.

However, based on Citic Securities' estimation, as stimulating policies are gradually rolled out from key capital cities to all over the country, it is expected to add auto consumption of 390.6 billion to 802.4 billion yuan, accounting for about 9.9 to 20.4 percent of the retail sales in 2019.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue