Govt plans measures to help ‘crucial’ auto sector
China will aim to stabilize new car sales, loosen purchase restrictions in certain cities and invigorate the used-car market in a bid to unleash the consumption potential for cars, an official said yesterday.
As a pillar of the national economy, the auto industry plays a crucial role in boosting domestic consumption and facilitating consumption upgrades, Wang Bin, deputy director of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce told reporters.
Car sales accounted for 9.6 percent of total retail sales in 2019.
Tax revenue and employment in the auto and related industries made up 10 percent of the country’s total, he said.
Due to multiple factors, China’s car sales have fallen for two consecutive years.
Compounded by the COVID-19 pandemic, sales plunged 42 percent year on year during the first two months of this year.
To prop up the market, the government recently announced a slew of measures to boost demand.
A State Council executive meeting on Tuesday decided to extend subsidies and tax exemptions for new energy vehicle purchases by another two years, which were set to expire at the end of this year.
Value-added tax on the sale of old vehicles by second-hand vehicle dealers will be cut to 0.5 percent from May 1 to the end of 2023. Liu Changyu, official with the Department of Foreign Trade of the MOC, said the pandemic overseas inevitably affected the country’s auto trade and supply chains.
China will strengthen international cooperation to maintain the stability of the global automobile industrial chains and supply chains, Liu said.
- About Us
- |
- Terms of Use
- |
- RSS
- |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证:沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证:31120180004
- |
- 网络视听许可证:0909346
- |
- 广播电视节目制作许可证:沪字第354号
- |
- 增值电信业务经营许可证:沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.