October 5, 2022

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China unveils more plans to spur car demand

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SHANGHAI, July 7 (Reuters)China on Thursday declared a raft of new methods to spur consumer need for vehicles, indicating it would look at extending a tax break for electric automobiles and strategies to clear away some limits on second-hand auto profits.

The Ministry of Commerce made the announcement as element of a joint statement with 16 other departments which includes the finance and market ministries.

The world’s most significant car or truck industry has been hit difficult in the latest months by stringent lockdowns in Shanghai and other areas of the country to suppress the distribute of Omicron coronavirus variant.

As aspect of the new attempts, authorities very last thirty day period halved the car buy tax to 5% for autos priced under 300,000 yuan ($45,000) with 2.-litre or more compact engines.

Customers of certain totally electric and partly electric powered automobiles have not experienced to fork out the buy tax considering the fact that 2014. A system to reinstate it following year could now be scrapped, the ministry said, confirming a stance to start with flagged previous thirty day period by the country’s cupboard.

But the ministry assertion did not make a mention of any extension of subsidies for what China phone calls new electricity automobiles – a programme that has been credited with supercharging the sector’s advancement.

Reuters claimed in May perhaps that authorities were talks with automakers about extending the programme.

The commerce ministry also explained it would stimulate the substitution of older vehicles and improve credit score assistance for car or truck buys.

(Reporting by Brenda Goh in Shanghai and Sophie Yu in Beijing Editing by Edwina Gibbs)

(([email protected] +86 () 21 2083 0088 Reuters Messaging: [email protected]))

The sights and opinions expressed herein are the views and thoughts of the author and do not always replicate those of Nasdaq, Inc.

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