China to take steps to aid troubled auto industry

Shanghai, December 15 (Gasgoo.com) China is considering taking new steps to help the automotive industry and encourage customers to buy vehicles with lower exhaust emissions, the Associated Press reported.

"Industrial growth is sharply declining and we have not seen a turning point yet. We feel a lot of pressure," Industry Minister Li Yizhong aid at a recent news conference in Beijing.

The government will spend 15 billion yuan ($2.2 billion) to subsidize loans to companies to improve technology and cut energy use, Li said.

He said Beijing might buy surplus steel to help producers and give aid to steelmakers for upgrading technology as demand plummets.

Also Beijing is considering ways to revive sales including cutting taxes, offering low-interest loans or forcing older vehicles off the road, he added, but gave no indication any measures had been decided or when they might take effect.