Chinese Government to Plan Rural Car Purchase Subsidies for Rural Area residents

It’s suspected that Chinese government may introduce a new round of subsidies for car purchase in rural areas of China in the near future. Several listed carmakers, including Changan, had sought confirmation from involved governmental apartments, while nothing had been confirmed yet.

Experts believe Chinese government’s introduction of new rural subsidy policy is very likely, considered China’s weak auto market, high vehicle inventory and low capacity utilization.

Reportedly, the new subsidies will cover car purchases by rural area residents, including passenger vehicles, minivans and pickups with displacement of 1.6 L or below. To be noted, China’s first rural car purchase subsidies came around the year of 2009, which has brought a car purchase surge in rural areas of China.

It’s believed that China’s preferential policies in auto segment, once introduced, would contribute significantly to China’s overall economic growth and Chinese domestic auto brands, such as Great Wall, Changan, SAIC Motor and JAC, will benefit prominently.