morningwhistle.21cbh.com - China is unlikely to roll out a new round of auto subsidies in rural areas in the near future. Regulators are not focusing on new stimulus policies given above-expectation auto sales and the central leadership transition.
There is no news for auto subsidies in rural regions or vehicle trade-in, Cui Dongshu, assistant secretary of the China Passenger Car Association, told Oriental Morning Post.
Cui added, it is necessary to have a similar policy to boost rural consumption, but the new scheme would not be issued until the government transition in the spring of 2013.
The assistant secretary also mentioned the association has submitted several proposals about a restart of the countryside auto subsidy, yet not official reply has been received.
"China's passenger car sales added 11.7 percent to 1.25 million units in October. The estimation-exceeding result makes the issue of another stimulus much less urgent for regulators. Besides, some experts call for respecting market force," Cui said.
In view of the current situation, the possibility of new auto stimulus plans is rather slim, said one authoritative source at the China Association of Automobile Manufacturers.
China first introduced an auto program in rural regions in 2009, injecting 5 billion yuan to subsidize farmers who replaced their used vehicles with light trucks or minivans. By the time the policy concluded at the end of 2010, sales of small vehicles surged by 1.5 million units.
After China's auto stimulus policies ended at the beginning of 2011, the country's auto market only grew 2.5 percent over the following 12 months, the lowest rate in 13 years.
