Foshan rolled out stimulus for car market amid coronavirus outbreak

SHANGHAI, Feb 19 (SMM) – Foshan in south China’s Guangdong province recently announced stimulus measures for its automobile market, the first city in China to do so amid a coronavirus outbreak, in a bid to revive consumption and reduce the economic impact of the epidemic. 

Form March 1, the city government will offer subsidies of 2,000 yuan for purchases of new cars and 3,000 yuan for replacement of existing cars, according to a document published on February 16.

A subsidy of 5,000 yuan per car will be granted to consumers that purchase 5 or above large passenger vehicles or medium and heavy-duty trucks at a price of no less than 500,000 yuan/unit. 

More stimulus measures will be rolled out to propel the auto market this year, as China urges the efforts to stabilise demand for traditional commodities. 

These may include incentives for the phaseout of outdated vehicles, especially vehicles of and below national III emission standards, inspiring policies to boost purchases of new energy vehicles, low emission cars and intelligent cars. Greater subsidies will likely be granted to medical personnel and public health workers.