A development plan for China's auto industry will be issued very quickly, which sets the growth rate of the auto industry in 2009 above 10 percent, and aims to realize a faster growth than that of GDP in the next few years, the Economic Observer reported today.

The plan covers credit supply for the auto industry, preferential policies for the research of new energy autos, reorganization of auto companies, etc. It also suggests suspending purchase tax for those vehicles whose exhaust emissions are below 2.0 L. In this plan, local governments are required not to issue any regulations that could adversely affect the development of the auto industry.

Some insiders think that the auto industry is faced with a very different situation compared with the real estate market - the auto industry is experiencing only a slowdown, not a severe slump. Xu Changming, an official from the State Information Center, considered that the plan targets the stable development of the auto industry in short term, but aims to realize industrial restructuring in the long run.

Formulated by the National Development and Reform Commission, this plan is likely to be approved by the State Council in February.

For more information, please read the entire article in Chinese:

http://www.eeo.com.cn/Politics/beijing_news/2009/01/11/127046.shtml

(China.org.cn translated by Fan Junmei January 12, 2009)