Beijing mulls policies to encourage auto purchases in rural China
Automotive News China
Automotive News | 2019-1-11
The Chinese government is weighing policies to encourage rural residents to buy new vehicles, a senior government official told the state-owned China Central Television Station.|
The policies are intended to support the shift of auto sales from cities to rural areas in China where vehicle demand remains strong, Ning Jiezhe, vice director of the National Development and Reform Commission, said Tuesday.
The commission is China¡¯s central economic planning agency. Ning didn¡¯t provide specifics on any of the policies the commission is likely to roll out.
The remarks Ning made on TV triggered a rally in the share price of Chinese automakers on Wednesday. Shares of Great Wall Motor Co., China¡¯s largest light-truck maker, rose 10 percent Wednesday on the Shanghai stock exchange.
After declining for five consecutive months amid the weakening domestic economy, China¡¯s new-vehicle deliveries through November dipped 1.7 percent to roughly 25.4 million.
The China Association of Automobile Manufacturers estimates the Chinese auto market in 2018 posted its first annual sales decline since 1990, with new-vehicle deliveries declining 3 percent from 2017.
For 2019, the industry trade group predicts that China new-vehicle sales will remain unchanged at 28 million.
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