Ministries: rural car market to be growth engine

China's Ministry of Commerce, the Ministry of Industry and Information Technology and six other ministries have announced their suggestions on promoting auto consumption. The rural car market is seen as the next potential growth engine for the auto industry.

The suggestions for the promotion of auto consumption point out that a commercial pattern needs to be established to suit China's rural auto market. And the quality of auto products and post-sales services must be guaranteed. The campaign is part of a bigger national policy called "cars going rural", which encourages car makers to introduce economic models to the increasing number of relatively affluent farmers.

Local farmers said, "This is the first time that I have seen so many new cars. I am pleased to see that the government and car companies regard us farmers as important customers."

Car makers say they have confidence in the rural market as the disposable income of farmers continues to rise by around 5 to 10 percent annually.

Lu Jianhui, deputy general manager of Chery Auto said, "China's rural areas are set to become an important market as farmers' purchasing power continues to rise."

Car makers have expanded their sales networks in rural areas. And they have also equipped their retailers with garages so that their rural customers can enjoy a full range of services.