China to launch auto rescue plan this week

Shanghai, January 12 (Gasgoo.com) China's top economic planner National Development and Reform Commission may roll out the long expected automotive industry rescue package on within this week, an insider participating in the policy making process said on Sunday, according to the Beijing News.

The unnamed source explained that major measures of the plan have already been defined, and there's only a few small details left for further consultation.

The aim of the plan is to ensure an annual sales growth of some 12 percent for the next three years in the auto sector, the source said. Related stimulus packages for other industries are expected to follow up soon.

Measures in the auto industry rescue package were reported to include cuts of 10 percent vehicle purchase tax to boost consumption, direct government funding to support fuel efficient vehicles and new-energy vehicles, and incentives for car owners to scrap their old models in favor of new ones.

In 2008, retail sales of passenger vehicles in China, excluding exports, rose 7.4 pct to 6.43 million units, a significant fall from the double-digit growth rates seen in recent years, as the global recession stunted demand.