China's Auto Sales under Trade-in Policy Hits RMB 3.5 bln in Q1

BEIJING, May 24 -- The auto sales under trade-in subsidies policy offered by the Chinese government hit RMB 3.5 billion, or 78.2% increase in the first quarter of this year, said Yao Jian, spokesman of the country's Ministry of Commerce.

The Chinese government offered subsidies for 24,000 automobile purchasers in the first three months, the auto sales amount surged 78.2% more than in the fourth quarter of last year.

According to the auto trade-in policy, which started running from Jun. 1, 2009 to May 31, 2010, the Chinese government has been providing subsidies from RMB 5,000 to RMB 18,000 to each auto purchaser, more than the original subsidies, which were from RMB 3,000 to 6,000 to each auto purchaser.

Reportedly, 1,386 auto purchasers got a total of RMB 18.37 million worth of subsidies under the trade-in policy in Henan Province last month, and these purchasers brought sales revenue totaling RMB 372 million.