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Wen bats for automobiles

By Li Fangfang (China Daily)
Updated: 2009-04-28 14:58

China will take more steps to boost automobile demand by modifying the related policies and expanding the used car and auto leasing markets, said Premier Wen Jiabao in the government work report speech he delivered at the opening of the second session of the 11th National People's Congress (NPC) on March 4 in Beijing.

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"New growth areas of consumption will be fostered and developed. The second-hand vehicle and auto leasing markets would be standardized and rapidly developed," said Wen. The premier said the government will also modify the related policies to guide and forge a healthy consumption pattern in the automobile market, one of the key sectors that would stimulate domestic demand and drive economic growth.

Moreover, "we will implement policies to reduce the vehicle purchase tax and subsidize rural residents' vehicles purchases to stabilize and increase consumer spending on cars and motorcycles," said the National Development and Reform Commission in its report on the implementation of the 2008 plan for national economic and social development at the NPC.

Shen Rong, vice-president of China Automobile Dealers Association (CADA), confirmed that it is now drafting a new standard for used vehicle appraisal and evaluation. "The related government departments are doing research to modify the policy on the sector and establish a public information platform for used vehicles, in a way to standardize the market, and encourage the circulation of used cars," said Shen.

In January, China for the first time topped the US in automobile sales, after a series of industry and market support measures adopted by the government began to take effect...

The full text is available in the March Issue ofAuto China. Please visit publications for more subscription details.