Sleek machine: People visiting the Shenyang International Automobile Industry Expo in Shenyang. Vehicle sales rebounded nearly 20% month-on-month in Guangxi Jurong, as China works towards stimulating consumption and bolstering its automotive industry. — AFP
In late June, an executive meeting of the State Council decided on policies to provide greater support to automobile consumption, including boosting the used car market and supporting new-energy vehicle purchases by extending the NEV tax exemption policy. The world’s largest automobile market recovered immediately in June due to the cut in car-purchase tax.
A total of 2.5 million motor vehicles were sold in June, up 23.8% year-on-year and up 34.4% m-o-m, data from the China Association of Automobile Manufacturers shows.Auto production and sales fell sharply from mid-March to April as the resurgence of ovid-19 in Jilin Province and Shanghai disrupted the supply chains of the auto sector, CAAM said.
“The car-purchase tax cut policy is a silver bullet for stimulating consumption,” said Cui Dongshu, secretary-general of the China Passenger Car Association.