BEIJING – A new round of stimulus policies including car replacement and vehicle going to the countryside policies for the automotive industry will be launched soon by the government, a person familiar with the matter said.
The new car replacement policy will be implemented by focusing on the small-displacement vehicles, and the subsidy will refer to the previous replacement policy in 2009.
Meanwhile, the vehicle going to the countryside policy will also lay stress on the small-displacement vehicles, and a rural resident who buys a small-displacement vehicle can achieve a subsidy of up to ¥5,000 ($790), 10 percent of the price.
In addition, the new round of stimulus policies will promote the production and consumption of new energy vehicles by further improving the preferential finance and tax policies for them.
China recently launched the new subsidy regulation on consumption. ¥36.3 billion will be used for promoting four kinds of products including energy-saving appliances and vehicles, and high-efficiency lighting and electric motors. The stimulated consumption demands are expected to reach ¥450 billion.
The Chinese government announced on May 16 a ¥6 billion ($952 million) plan for 1.6L and under energy-saving vehicles to promote their sales during the period of the 12th Five-Year Plan.