China’s MIIT encourages expansion of vehicle license plate quota to boost auto spending

Shanghai (Gasgoo)- China's Ministry of Industry and Information Technology (MIIT) recently stated that regions where the automobile purchase restriction policy is implemented will be encouraged to increase as appropriate the vehicle license plate quota as part of efforts to promote the spending of automobile and relevant products.

Amongst the battle against the coronavirus epidemic, China will proactively work on stabilizing the traditional commodity consumption like automobiles, the ministry said in a guidance opinion issued on Feb. 24.

Besides, the MIIT highlighted that the development of such industries as automobile, lithium ion battery and some leading manufacturing businesses will be prioritized to consolidate the competition advantage of industrial chain. Meanwhile, the government will vigorously prop up some strategic emerging industries like 5G, smart manufacturing and NEV, and energetically enhance the capacity of supporting industries including auto parts, core components and key electronic materials. 

Prior to the MIIT's statement, Wang Bin, vice-director of the China's Ministry of Commerce (MOFCOM)'s Market Operation Department, said last week the ministry will make joint efforts with relevant authorities to draw up and promulgate the policies that help stabilize automobile consumption, so as to mitigate the impact from coronavirus outbreak.

Besides, local governments are hampering out plans to boost vehicle transaction to promptly help the market get rebound as well. Foshan, a prefecture-level city in Guangdong Province, leads the country in launching substantial policies and incentives to encourage people to buy more cars. Local government announced that a consumer who buys vehicles that meet the China Ⅵ emission standard will be granted subsidy of RMB2,000-5,000 per vehicle.

Guangdong provincial government said it will push eligible regions to launch the subsidy policies for promoting the scrapping and replacement of old and used motor vehicles, according to a governmental file issued on Feb. 21.