China said to release policy to boost car sales in rural area in June

Beijing (Gasgoo)- China is likely to issue another “cars going to the countryside” policy in June, according to China Securities Journal.

Photo credit: Saic GM Wuling

The media outlet cited multiple insiders that the new policy will be set to encourage sales of both gasoline-fueled and new energy-powered vehicles priced below RMB150,000 ($22,230) in the rural areas of China. The government will offer subsidies within the RMB3,000-RMB5,000 ($445-$741) range per car sold. Industry experts projected that the policy would boost the sales of oil-fueled vehicles by 200,000-300,000 units and new energy vehicles by 300,000-500,000 units. 

On April 25th, the General Office of China’s State Council released “Opinions on Further Unleashing the Potential of Consumer Spending and Promoting the Sustained Recovery of Consumption”. The document stated that the nation is helping to accelerate the development of new energy vehicles and encouraging commerce services to branch out to rural areas of the country. With cars and home appliances as the primary focuses, companies are welcome to carry out promotions for the said products. In addition, the building of new energy vehicle infrastructures (e.g., charging piles) is too encouraged in the countryside.