Policies to stimulate demand for automobiles

Car buyers are expected to enjoy discounts and participate in a series of activities as Shanghai released policies to stimulate demand for automobiles and boost the economy.

A number of new car launches and preferential promotions will be arranged during a two-month Double Five shopping festival. 

Activities will include exhibitions, new product launches, driving experiences and auto carnivals to attract potential car buyers. The city said the activities will cover more than 800 4S stores.

Earlier this month, Shanghai said it would further rev up auto consumption and released a series of policies. The promotions and activities are a follow-up to the government's announcement of policies to boost auto consumption.

Based on the plan, the city will increase the supply of licence plates, which means adding 40,000 plates for non-commercial passenger cars starting from the end of March to the end of the year. The government also said it will give subsidies for the purchase of gasoline and new-energy vehicles.

Qiu Wenjin, deputy director of the Shanghai Development and Reform Commission, said automobile consumption plays an important role in the country's economic and social development. 

Shanghai-headquartered Pinduoduo said it will give discounts to car buyers. The first batch of products launched on the platform are 55 SAIC Group's new car models, with price reductions of more than 100,000 yuan (US$14,127) per vehicle.

China’s biggest automaker SAIC Motor will host activities and provide discounts on its nine car brands and more than 40 car models, according to the latest data provided by the company. The automaker will host an auto carnival at the Shanghai Exhibition Center from May 1 to May 10.

SAIC Motor said it will provide discounts, subsidies, free maintenance and insurance and other promotions for consumers.

More than 10 car brands, including as BMW, Audi, Tesla, Volvo, Lexus and Porsche, also launched a series of preferential activities supporting the city’s  Double Five shopping festival.

The Pudong New Area, Jiading, Songjiang, Putuo and other districts in Shanghai also launched a variety of activities to attract consumers. For example, from Friday, Songjiang will use outdoor space in core business areas such as Kaiyuan Mediterranean shopping mall to gather 20 brands together for a monthlong exhibition.