China’s authorities highlight policies on stabilizing auto consumption

Shanghai (Gasgoo)- China authorities once again highlighted the significance of stabilizing auto consumption amid the anti-coronavirus period and after that.

To maintain a stable automobile spending, the commerce units of local governments should proactively promote the issuance of subsidy policies on new car purchase and automobile replacement, advance the relaxation of the restriction on pickups entering the city, facilitate the used car transaction, and carry out activities for car sales promotion, according to a statement jointly issued by China’s Ministry of Commerce, National Development and Reform Commission (NDRC), and National Health Commission on Mar. 19.

The statement also said the automobile purchase restriction measures should be optimized in regions where the limitation policies have been implemented. 

The economic recovery is the foremost task China faces now with the COVID-19 epidemic effectively contained. As one of mainstays to the national economy, the automobile industry is of particular concern to the overall growth. Aside from the latest statement, China's Ministry of Industry and Information Technology (MIIT) stated on Feb. 24 that regions where the automobile purchase restriction policy is implemented would be encouraged to increase as appropriate the vehicle license plate quota as part of efforts to promote the spending of automobile and relevant products.

Besides, the MIIT stressed that the development of such industries as automobile, lithium ion battery and some leading manufacturing businesses would be prioritized to consolidate the competition advantage of industrial chain. Meanwhile, the government would vigorously prop up some strategic emerging industries like 5G, smart manufacturing and NEV, and energetically enhance the capacity of supporting industries including auto parts, core components and key electronic materials.

Prior to the MIIT's statement, Wang Bin, vice-director of the China's Ministry of Commerce (MOFCOM)'s Market Operation Department, said the ministry would partner with relevant authorities to draw up and promulgate the policies that help stabilize automobile consumption, so as to mitigate the impact from coronavirus outbreak.