Government mulls new stimulus for auto export

Shanghai, January 5 (Gasgoo.com) China's Ministry of Commerce is mulling a new package to support the country's auto exports, which saw dramatic downturn in recent months, the Beijing News reported Monday.

"The high growth potential of auto export has made it a top priority for state support," said Xu Changming, director of the Economic Consultative Center of the China State Information Center. He says vehicle export is growing much more quickly than domestic auto sales.

Zhou Shijie, vice director general of the Department of Mechanic, Electronic and Hi-Tech Industry, Ministry of Commerce, made a series of proposals on encouraging vehicle exports at a recent industry forum. The measures include tax-cut, funds for export-oriented makers, as well as easier loans and credits.

China's auto exports began to slide down ever since last August when export figure dropped 11.29% year on year to 44,000 units. The situation worsened with an export total of 35,800 units in November, down 46.5% from the same period of 2007. The Ministry is expecting export of 613,000 vehicles for the full year of 2008, which represents zero-growth from last year's level.