Dec 27, 2008

Business - China to offer incentives to scrap old cars: state media

BEIJING (AFP) – China plans to offer incentives for car owners to scrap their old models in favour of new ones, in a bid to lift the auto industry as it enters a period of crisis, according to state media.

The measure is part of a new package being prepared in Beijing aimed at avoiding a US-style collapse of the local auto sector, the Xinhua news agency reported.

"Details of the plan will be announced very soon," said an unnamed official with the commerce ministry. He did not give any details.

The official was speaking shortly after dismal figures were released showing that Chinese auto sales fell 14.6 percent in November from a year earlier.

Other measures that China may adopt to bolster auto sales include cuts in the 10-percent vehicle purchase tax and easier access to car loans, according to Xinhua.

The health of the auto industry is crucial for the overall well-being of the Chinese economy as economists have argued more than 150 industries depend on it, including the steel and petrochemical sectors.

"The auto industry's current difficulties are what concern me the most," Premier Wen Jiabao was quoted as saying in a recent trip to the southwestern city of Chongqing, a car manufacturing key area of China.

China's economy is under growing pressure due to the global crisis, with overall growth in the third quarter at nine percent, the lowest in over five years.

The World Bank has forecast that growth in the Chinese economy will slow to 7.5 percent in 2009, a level not seen for 19 years.

10 comments:

Hazel Donovan said...

You actually make it seem so easy with your presentation but I find this topic to be really something which I think I would never understand. It seems too complicated and extremely broad for me. I’m looking forward to your next post, I will try to get the hang of it!
car removal near me
free car body removal brisbane

We Buy Vehicles said...

Great post. I used to be checking constantly this weblog and I am inspired! Extremely useful information specially the ultimate part :) I maintain such info much. I used to be seeking this particular information for a very lengthy time.
Thank you and good luck
cash for cars melbourne city
cash for cars toowoomba

Delight Car Removal said...

Thanks for sharing. Wow, that was strange. I just wrote a really long comment but aftr I clicked submit my comment didn't show up. Grrrr... well, I'm not writing all that over again. Anyways, just wanted to say fantastic blog!
car removal brisbane
cash for cars brisbane

Hashtag Car Removal said...

Hi, I am reall glad I have found this info. Nowadays bloggers publish just about gossips and internet and this is actually irritating. A good site with nteresting content, this is what I need. Thank you for keeping this web site, I'll be visiting it. Do you do newsletters? Can not find it.
car buyer sydney
car scrappers sydney

cash for cars QLD said...

Truly, this article is really one of the very best in the history of articles. I am a antique ’Article’ collector and I sometimes read some new articles if I find them interesting. And I found this one pretty fascinating and it should go into my collection. Very good work.
cash for cars logan
car removal brisbane

Charlie Lix said...

For over a decade, we have been delivering unparalleled service and benefits to meet the cash for care needs of the people in Canberra. We ensure that our customers come first every time and thrive on their satisfaction.
Car Removal Yarralumla

Ad Cash 4 Cars said...

We are an undisputed leader of Adelaide's Cash for Car industry with a highly trained staff ready to cater all your car removal requirements- from free estimates to inspection visits, free pick-up or towing, and free paperwork.
unwanted removal Brompton

Max Tiney said...

Ready to sell your unwanted car. It is your opportunity to earn some quick cash with us. With an experience that spans several years, we are well-versed in offering fair evaluations, instant estimates, inspection visit and pick-up, highest cash paid-on-the-spot, free towing, and free paperwork.
cash for Audi Brisbane

APlus Car Removal said...

We are years experienced company known and lauded far and wide for our highest cash for car offers, secure towing, and instant quotes. Our ultimate goal is to deliver an outstanding customer experience. And this is made possible with our specialist staff who ensure that our customers and their cash for car needs come first every time.
car wreckers sydney

Benz Well said...

Best Cash for Cars Melbourne stands up to its name. Our car removal team has truly pushed the boundaries of excellence in terms of efficiency, service, performance and support. So, why not bid farewell to your beloved car in return for the highest cash?


cash for scrap cars melbourne