Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home Email this story   Print this story
China to energize used-car market to spur new-vehicle sales
Bloomberg | 2017/3/24

China will take more steps to encourage used-car sales to prompt owners to sell their old vehicles and buy new ones.

The used-car market is likely to continue its rapid expansion, the Ministry of Commerce said in a faxed statement. The ministry added that it has not yet decided whether to resume incentives for rural residents to buy new cars.

The government is counting on a more active used-car market to encourage owners to sell their vehicles and buy new ones -- especially in bigger cities where ownership is restricted because of traffic congestion. Sales of used cars picked up after the State Council ordered most local governments to remove restrictions on used-car registrations last year.

Growth in new-car sales may slow after the government scaled back incentives this year, but deliveries in lower-tier cities and rural areas will expand more quickly than in first- and second-tier cities, the ministry said.

China halved a 10 percent sales tax on small-engine vehicles in October 2015, helping push deliveries to a 26th straight annual record last year. The levy has been raised to 7.5 percent this year. Auto sales rose 6.3 percent in the first two months of 2017, according to China Association of Automobile Manufacturers.

Carmakers and dealers are at odds over the need for government measures to boost vehicle deliveries in rural areas. Rising sales in January and February surprised analysts who expected weak demand in the wake of the tax increase.

The government regards the auto industry as a pillar of the Chinese economy and uses stimulus measures to spur its growth. In 2009 and 2010, China offered incentives to rural residents to buy cars.

Related Stories
  • Used-vehicle platform Renrenche to slash jobs by 60%, report says
  •     --Published:2019/25/6
  • Used-vehicle dealers seek tax cut as slump continues
  •     --Published:2019/18/6
  • Beijing rolls out pilot program for used-vehicle exports
  •     --Published:2019/7/5
  • For Beijing, more to do to unshackle vehicle sales, services
  •     --Published:2019/8/3
  • Used-vehicle deliveries rise 11% in 2018 on strength of crossovers, SUVs
  •     --Published:2019/15/2
  • SoftBank's Vision Fund in talks to invest $1.5B in China used-car platform
  •     --Published:2019/5/2
  • Used-vehicle sales advance 13% in first half
  •     --Published:2018/3/8
  • Used vehicles in China remain a challenging market to play
  •     --Published:2018/29/6
  • How Beijing can fix China's fragmented used-car market
  •     --Published:2017/8/9
  • Used-vehicle sales rise 22% in 1st quarter
  •     --Published:2017/19/5
  • Used-vehicle sales expected to jump 20% in 2017
  •     --Published:2017/10/2
  • Used-vehicle deliveries rise 4% in first half
  •     --Published:2016/16/8
  • to spin off used-car sales website to raise cash
  •     --Published:2015/1/12

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     


    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.