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Policies Formulated to Boost Auto Markets

After several rounds of discussions, a series of policies to encourage auto consumption have been worked out and will soon be put into effect in China. It is believed that this will play an important role in developing China's auto industry and auto market in the long run.

It is disclosed that the policies to be enforced aim to boost China's private car consumption, particularly that of energy-saving economic types. The policies are reportedly to involve the following four aspects:

First and foremost, to bring about an expected auto consumption boom, a new tax system on fuel supply will have to be established along with a cleanup of unreasonable charges.

Also, as is indispensable for an auto use environment, an operational traffic management system and parking lot construction including auto consumption credit service by financial institutions are all the more demanded.

With economic types of sedans developed, differential consumption tax rates on vehicle exhaust will inevitably be introduced. Vehicles used in cities must have a ceiling in number. No differential consumption taxes shall be exacted on autos with a minimum of vehicle exhaust. Old vehicles must be scrapped and no use of these is to be allowed.

Experts say that a policy environment is being developed in China that will become more and more amenable to private auto users. But changes take time. For the time being, consumers' concerns are for cut auto price and an elimination of miscellaneous charges on autos, rescinding limitations on auto purchasing and improved infrastructure construction needed for an auto market boom in China.

(People’s Daily Online 01/21/2001)


In This Series

New Century Heralds a Healthy Auto Market

'Fragile' Auto Sector Needs Boost

Northeast China City to Boost Auto Production

Price Cut of Car Unavoidable

Toyota moves into China market

Auto sector opens wider

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