Car policy may be extended further into rural areas

The Chinese government may consider extending tax cuts to boost automobile sales in more rural areas, said Zhu Hongren, spokesman for the Ministry of Industry and Information Technology.

According to the plan at the beginning of the year, tax cuts for the purchase of cars with a displacement of under 1.6 liters will end on December 31. The market shows that the policy is very helpful in boosting domestic demand in the third quarter of the year. The policy of selling cars to rural areas has resulted in 1 million commercial vehicles and passenger cars sold. The policy has also led to an over 15 percent increase in sales in the car market.

An auto industry expert predicts that those vehicles with 1.8 liter 2.0 liter engines that sell well may also be included in the policy, and those 1.0 liter cars may be exempt from the automobile acquisition tax.

Agencies and Wang Yang contributed to this story

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