China to release stimulus package for auto market

Published: 05 Jan 2009 01:43:44 PST

Jan. 5, 2009 (China Knowledge) - Chinese government will unveil a stimulus package to boost the auto market soon, the People's Daily reported.

The new policies put a special focus on the promotion of low-emission vehicles, self-owned brands as well as tax cut on auto sales transactions, according to the state media.

The report said the plan to revitalize the auto sector has been mapped out and will gradually be put into full operation.

In addition, the government will support the development of hybrid or new energy vehicles. And vehicles that are forced to be discarded one year earlier of time will get subsidies.

Official statistics showed that China's vehicles sales decreased 14.6% year-on-year in November, 2008 due to the shrinking demand amid the financial crisis. The growth rate for the first 11 months was 8.5%.

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