Guangzhou to offer subsidies for car purchases

SHANGHAI, Mar 4 (SMM) – Guangzhou, the leading industrial and commercial center of southern China, will offer subsidies for car purchases, in a bid to revive auto sales, which have been hit by the fallout from the COVID-19 epidemic outbreak.

The city will grant each individual who buys a new energy vehicle a subsidy of 10,000 yuan (about $1,432.4) from March to the end of December, according to a statement released on Tuesday. Consumers who replace or scrap used vehicles at dealers registered in Guangzhou will get 3,000 yuan for each purchase that meets the requirements of the national VI emission standards.

Guangzhou’s announcement came one day after the city of Xiangtan, in the southern province of Hunan, said that it will offer the first 3,500 individual consumers 3,000 yuan (about $429) each in cash, from March 1, if they buy a car made locally by Geely.

Foshan, located near Guangzhou, was the first city to lay out specific policies to help the auto market weather the virus crisis. It announced at the end of January that it would offer cash of 2,000 yuan for purchases of new cars and 3,000 yuan for replacement of existing cars from March 1.

Car sales in China, the world’s biggest car market, have been on the decline over the past two years. The China Association of Automobile Manufacturers (CAAM) said last month that the epidemic outbreak would wreak havoc on auto sales and production in China in the short term.

Data from the industry association showed that sales of automobiles in China dropped 18.7% year on year to 1.93 million units in January.

According to China Passenger Car Association (CPCA), another industry body, China’s passenger vehicle sales plunged 92% in the first two weeks of February.