Industry associations expect China's auto trade-in program, set to expire at the end of this month, to be extended, given that the domestic auto market still needs stimulus measures even though the program's impact on auto sales has been tiny.

"China's auto market, which is obviously less robust than last year's, needs to be boosted with continuous stimulus measures," Shen Rong, deputy secretary general of the China Automobile Dealers Association (CADA), told the Global Times.

China has been offering subsidies to car owners who trade in their old vehicles for new ones since August 2009, expecting to eliminate 1 million old vehicles. It tripled the maximum subsidy amount to 18,000 yuan ($2,637) in January to boost new vehicle sales and reduce emissions.

Other countries including Germany, the US, France, Italy, the UK and Russia have employed similar stimulus measures to boost car sales.

Germany's Federal Statistical Office said in March its green rebate plan prompted the full-year consumption expenditures of households last year to rise 0.4 percent.

"Without the purchases of motor vehicles, household final consumption expenditures would have been down by 0.5 percent in purely mathematical terms," the office said in a press release.

But things have worked out differently in China, where the program's effects on domestic auto sales have not been as strong as the impacts of the two other main stimulus measures - a purchase tax cut for small vehicles and subsidies for auto purchases in rural areas.

Figures from the Ministry of Commerce showed that as of December 20, vehicles whose owners filed for subsidies totaled only 12,101 units.

Industry insiders attributed the languid market response to deficiencies among the agencies handling the program, complicated procedures, low subsidies and a limited number of old vehicles. However, they believed the program would be extended, and are hoping to see improvements.

"The government has been tightening the property sector to cool speculation. It won't curb the auto industry [which is the second-largest contributor to the country's GDP] as the country is still on course to a sustainable recovery," Shen said.

But the government should be far-sighted, Shen said. "This is a good chance to facilitate technical updates and emissions reductions. The government should increase subsidies to car buyers or vehicle producers if the vehicles they are buying or producing emit less," Shen said.

"More automakers and their dealers should participate in the subsidy application process. After buying new vehicles, old car owners can entrust dealers to cash out the subsidy," said Cui Dongshu, deputy secretary-general of the National Passenger Car Association.