China Launches Nationwide Auto Consumption Promotion
China has launched a nationwide promotion covering the rest of the year to boost auto consumption, which is critical to economic growth.
The Ministry of Commerce (MOC) announced specific arrangements in a notice issued today on a campaign to promote auto consumption, including holding auto festivals in 100 cities and promoting new energy vehicle (NEV) consumption in rural areas.
The MOC will promote local governments and enterprises to introduce initiatives to support auto consumption, use local financial resources, and encourage financial institutions to introduce auto credit financial support measures, according to the notice.
The promotion is part of the government's efforts to stimulate domestic demand and stabilize economic growth. The auto industry is a major driver of economic growth in China, and the promotion is expected to help boost sales of both traditional and NEVs.
The MOC said that the promotion will focus on three key areas:
- Promoting NEV consumption in rural areas: The MOC will work with local governments to promote NEVs in rural areas, where the adoption of NEVs has been slower than in urban areas. The MOC will also work with financial institutions to provide financial support for NEV purchases in rural areas.
- Holding auto festivals in 100 cities: The MOC will work with local governments to hold auto festivals in 100 cities across the country. The festivals will feature a variety of activities, such as test drives, discounts, and promotions.
- Promoting auto credit financial support: The MOC will encourage financial institutions to introduce auto credit financial support measures. These measures could include low-interest loans, down payment waivers, and extended repayment terms.
The MOC said that the promotion will be implemented in a phased manner, with the first phase starting in July and the second phase starting in September. The MOC will assess the effectiveness of the promotion and make adjustments as needed.