China to unveil auto stimulus plan details soon

Shanghai, February 12 (Gasgoo.com) Following last month's release of its auto sector support package, the Chinese government is set to unveil related details of the auto industry stimulus plan by this weekend, Shanghai Securities News reported today, citing an industry official.

Dong Yang, deputy director of the China Association of Automobile Manufacturers (CAAM), said that the full text of the previously released stimulus plan for China's auto sector will be unveiled on Feb 13 or so. The details of the plan will cover five major aspects: cultivating the auto market demand, speeding up auto industry restructuring, boosting carmakers' technological upgrades, carrying out new-energy vehicle strategies, and supporting self-developed brands.

A highlight of the detailed plan will be the government's urging of the auto sector's restructuring and mergers. The CAAM official said that the related details of the plan will give guidelines on solving the various problems that may arise from the auto industry restructuring, mergers and acquisitions, such as fund-raising, tax paying, assets transfer and staff replacement.

The stimulus plan will also encourage consumers to buy low-emission vehicles and will offer some favorable polices, like tax cuts, for purchases of low-emission and energy-efficient cars. In addition, the government will also provide financial aid for domestic automakers and encourage them to develop own-brand, eco-friendly, hybrid vehicle models.

Since the Chinese government issued the auto sector incentives in mid-January, the auto market demand and sales in China have been considerably boosted. Last month, China sold 730,000 vehicles, which exceeded the 656,976 units sold in the U.S., making the Middle Kingdom the world's largest auto market in monthly sales for the first time.