China to launch auto industry rescue package soon

Shanghai, December 31 (Gasgoo.com) China's top economic planning agency has completed the layout of a stimulus package to save the automotive industry and will implement the plan soon after the cabinet approves it, a report by sina.com said Wednesday.

The report cited exclusive sources familiar with the details as saying the package, worked out by the National Development and Reform Commission, is a full-fledged one with many measures, including cuts in car purchase tax and consumption tax, funds to support fuel efficient vehicles and new-energy vehicles, and incentives for car owners to scrap their old models in favor of new ones.

Other steps such as facilitating mergers in the sector, encouraging banks to provide low-interest loans to automakers and government bodies to purchase more Chinese-brand cars are also included in the package, the report said.

An industry analyst said the report that the implementation of the stimulus package will help to improve consumer confidence amid the economic slowdown and China's auto market is expected to see higher growth rate in the next few years.