China's auto stimulus measures work effectively
- Source: Gasgoo
- [17:21 August 14 2009]
- Comments
China's measures to spur auto sales nationwide have worked effectively, as the sector has achieved double-digit growth even amid the global economic downturn, the country's industry minister said yesterday, adding that the government will promote more eco-friendly vehicles in the future, CCTV.com reported.
Li Yizhong, Minister of Industry and Information Technology, said China's auto sector achieved around 20 percent output growth in the first seven months of this year. Its sales volume also exceeded one million units for five consecutive months. He pointed out that the crucial driving factor for this growth is the stimulus policies released by the government since the beginning of this year.
In an effort to stimulate domestic spending, the Chinese government has halved the purchase tax on passenger cars with engine capacity less than 1.6 liters. In addition, the government has increased subsidies for auto replacements from one-billion yuan to 5 billion yuan this year, and rural buyers of environmentally-friendly light vehicles can get subsidies.
Local governments have also rolled out supporting measures to stimulate auto sales, said the minister. In central China's Hunan Province, local commerce authorities have announced they will offer up to 6,000 yuan for replacing used and high-emission vehicles.
Industry authorities say that compared to western countries' auto stimulus policies, China's measures have been effective and successful. The minister also said the government will promote more new-energy cars for environment protection and energy saving.
