China to expand used-car and car-rental markets

Shanghai, March 5 (Gasgoo.com) China will make efforts to stimulate auto purchases by measures such as expanding the second-hand vehicle market and auto leasing business, said Premier Wen Jiabao in the "Government Work Report" speech he delivered at the opening of the second session of the 11th National People's Congress (NPC) on Thursday, the Xinhua news agency reported today.

The measures are part of the government's effort to forge a healthy consumption pattern in the auto market, and thus to stimulate consumer spending and drive economic growth.

China's automobile industry sales growth slowed to 6.7% in 2008, putting an end to at least five years of double-digit growth, data from the China Association of Automobile Manufacturers showed.

A total of 9.38 million vehicles were sold last year, of which passenger vehicle sales rose 7.27% to 6.76 million units and commercial vehicles rose 5.25% to 2.62 million units, according to the association.

More measures are included in the report such as encouraging retailers to open stores in more townships and villages, allocating 43 billion yuan in subsidies for building low-rent housing, expanding people's consumption in culture, recreation, tourism, the Internet and animation.