Global carmakers embrace China's auto stimulus

Shanghai, January 16 (Gasgoo.com) Global automakers in China welcome the auto industry stimulus plan launched by the country's State Council on Jan.14, xinhua.net said today. The global auto giants said the support package would boost the Chinese auto market and would benefit their operations in China as well.

The plan includes a new set of tax cuts and subsidies aimed at boosting demand for cars. The purchase tax on cars with engine sizes below 1.6 liters will be cut from 10% to 5%. A one-off cash subsidies totaling 5 billion yuan ($732 million) will be given to farmers to replace their high-emission vehicles with more fuel-efficient and cleaner ones.

Ford China said the stimulus plan would support the sales of its new model -- Ford Fiesta, which was put into production on Jan.15 and will come with 1.3L and 1.5L models.

General Motors China said the purchase tax cuts and subsidies for farmers will benefit its two Chinese joint ventures. The automaker sold more than one million vehicles in China last year, with most were low-emission passenger cars below 1.6L.

Volkswagen China said the stimulus plan would boost VW sales as most vehicles manufactured by VW in China were models below 1.6L.

Toyota China announced it would introduce its electric cars to China later after its Prius hybrid was already produced in China.

Honda China has spoken highly of the plan and announced it would continue to introduce fuel-efficient and technique-advanced models to China in the future.