Auto Industry Wants Government Support Measures Extended
Auto sales in China have surged for three consecutive months, as government policies designed to give the sector a boost took effect.
Liang Dongmei 11 June 2009
(Caijing.com.cn) The semi-official China Association of Automobile Manufacturers (CAAM) may ask the government to extend auto industry support measures, with two major policies expiring at the end of the year, the association’s secretary general Dong Yang said.
Chinese vehicle sales jumped 34 percent year-on-year in May to 1.12 million units, helped by government tax breaks and subsidies, the CAAM said in a statement on its website on June 9.
Auto sales in China have topped one million units for the three consecutive months beginning March, as government policies designed to give the sector a boost took effect, the association said.
The government cut sales taxes on cars with engine displacements of 1.6 liters or smaller from January this year, and in March extended subsidies to cover small vehicle and motorcycle purchases in rural areas.
These two auto industry boosting policies will expire on Dec 31, 2009.
Auto sales in 2010 may see big fluctuations if these policies are not extended, Dong said.
CAAM figures show that passenger car sales in the first five months of the year rose 21.2 percent from a year earlier to 3.66 million units, while commercial vehicle sales fell 1.6 percent to 1.3 million.
Xiong Chuanlin, deputy secretary general of the CAAM, attributed the slump in commercial vehicle sales to insufficiently supportive policy and last year’s high base figure.
In April, CAAM upgraded its forecast for 2009 auto sales to 10.2 million units, a year-on-year growth rate of 8.7 percent. Earlier this year it had been projecting a 5 percent growth rate.
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Auto Industry Wants Government Support Measures Extended
Auto sales in China have surged for three consecutive months, as government policies designed to give the sector a boost took effect.
Liang Dongmei
11 June 2009
(Caijing.com.cn) The semi-official China Association of Automobile Manufacturers (CAAM) may ask the government to extend auto industry support measures, with two major policies expiring at the end of the year, the association’s secretary general Dong Yang said.
Chinese vehicle sales jumped 34 percent year-on-year in May to 1.12 million units, helped by government tax breaks and subsidies, the CAAM said in a statement on its website on June 9.
Auto sales in China have topped one million units for the three consecutive months beginning March, as government policies designed to give the sector a boost took effect, the association said.
The government cut sales taxes on cars with engine displacements of 1.6 liters or smaller from January this year, and in March extended subsidies to cover small vehicle and motorcycle purchases in rural areas.
These two auto industry boosting policies will expire on Dec 31, 2009.
Auto sales in 2010 may see big fluctuations if these policies are not extended, Dong said.
CAAM figures show that passenger car sales in the first five months of the year rose 21.2 percent from a year earlier to 3.66 million units, while commercial vehicle sales fell 1.6 percent to 1.3 million.
Xiong Chuanlin, deputy secretary general of the CAAM, attributed the slump in commercial vehicle sales to insufficiently supportive policy and last year’s high base figure.
In April, CAAM upgraded its forecast for 2009 auto sales to 10.2 million units, a year-on-year growth rate of 8.7 percent. Earlier this year it had been projecting a 5 percent growth rate.
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