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New policies aimed at boosting auto sales

Hu Yumo
China is to introduce measures this year to encourage vehicles purchases by relaxing restrictions and offering subsidies for buyers of new-energy vehicles.
Hu Yumo

China is to increase policy support to promote auto sales, according to the country's top economic planner.

The National Development and Reform Commission said cities with restrictions will be encouraged to relax them, increase vehicle purchase quotas, and offer subsidies for buyers of new-energy vehicles.

Ning Jizhe, the commission’s deputy head, told CCTV that consumption plays a fundamental role in the country's economic growth.

Ning said: “In the second half of this year,  the country will boost consumption in intelligent retail and online education, as well as promote consumption upgrade of automobile and home appliance sectors."

In the first half of the year, China released a series of policies to rev up auto sales amid the COVID-19 pandemic. 

Sales growth in April indicated a recovery in the market, with auto sales rising 4.4 percent year on year to 2.07 million vehicles, a reversal compared with the 43 percent drop in March and February’s 79 percent retreat.

On July 30, Shenzhen introduced subsidies totalling 400 million yuan (US$57.6 million) for buyers replacing vehicles.

The Shenzhen government said the subsidies would be given to a gasoline car or a new-energy vehicle with emission standards above National VI. 

Buyers will be given 3,000 yuan if their new vehicle costs less than 300,000 yuan and 5,000 yuan for new vehicles over 300,000 yuan. 

On July 28, Chongqing released measures to promote new-energy vehicles, accelerate the construction of charging poles, optimize registration services and increase sales of second-hand vehicles.

Zhang Xiaofeng, an independent market analyst, said that with more support policies, more people will consider buying vehicles. The auto market is expected to continue its positive momentum in the second half of the year, Zhang added.

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