Grant to replace autos to rise
By Jin Jing |
January 1, 2010, Friday
|
Print Edition
Print Edition
CHINA will increase the subsidy for car owners who replace old vehicles from today as part of an extended stimulus package aimed at maintaining a rapid growth for the auto market.
The Ministry of Commerce said in a statement yesterday that qualified car owners who trade outdated or highly polluted vehicles will receive a subsidy of between 5,000 yuan (US$733) and 18,000 yuan this year, up from last year's maximum 6,000 yuan.
Vehicles that are eligible for subsidies include medium coaches, trucks and cars.
Highly polluted vehicles are gasoline-powered ones that fail to meet the nation's first generation of emission standard, and diesel vehicles that do not meet the third generation of emission standard.
In February 2009, the Chinese government launched a stimulus package, including giving a 1-billion-yuan subsidy to car owners who upgraded their cars as well as halving the tax on small cars, to spur demand in the industry after a dismal 2008.
The financial support was later raised to 5 billion yuan in May and expanded to cover more vehicles.
The new subsidy is part of China's renewed measures for the auto industry in 2010, which also include raising the tax from 5 percent to 7.5 percent on cars with engine capacity of 1.6 liters or below.
With the incentives, China is targeting to sell 15 million vehicles this year after an explosive growth in 2009.
Vehicle sales in China accelerated 42 percent to 12.23 million units for the first 11 months of last year, with small cars being the major driving force.
The robust sales enabled China to be one of the world's fastest recovering auto markets and helped it retain its lead against the United States as the biggest auto market.
The Ministry of Commerce said in a statement yesterday that qualified car owners who trade outdated or highly polluted vehicles will receive a subsidy of between 5,000 yuan (US$733) and 18,000 yuan this year, up from last year's maximum 6,000 yuan.
Vehicles that are eligible for subsidies include medium coaches, trucks and cars.
Highly polluted vehicles are gasoline-powered ones that fail to meet the nation's first generation of emission standard, and diesel vehicles that do not meet the third generation of emission standard.
In February 2009, the Chinese government launched a stimulus package, including giving a 1-billion-yuan subsidy to car owners who upgraded their cars as well as halving the tax on small cars, to spur demand in the industry after a dismal 2008.
The financial support was later raised to 5 billion yuan in May and expanded to cover more vehicles.
The new subsidy is part of China's renewed measures for the auto industry in 2010, which also include raising the tax from 5 percent to 7.5 percent on cars with engine capacity of 1.6 liters or below.
With the incentives, China is targeting to sell 15 million vehicles this year after an explosive growth in 2009.
Vehicle sales in China accelerated 42 percent to 12.23 million units for the first 11 months of last year, with small cars being the major driving force.
The robust sales enabled China to be one of the world's fastest recovering auto markets and helped it retain its lead against the United States as the biggest auto market.
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