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China has no imminent auto stimulus plan

Steel News - Published on Wed, 27 Jun 2012

Bloomberg quoted according to an official with the country top economic planner China has no imminent plans to introduce more stimulus policies to help revive vehicle demand in the world’s biggest auto market.

Mr Chen Jianguo deputy director of the agency industry coordination department said the National Development and Reform Commission is still studying the feasibility for measures to subsidize vehicle purchases in rural areas.

He said that “We’re still looking into the issue of whether such policy is even needed. It is common sense that there’s no need for the same kind of stimulus policies introduced in 2009.”

Mr Chen’s comments may reduce speculation that the state will step up auto subsidies after a government official said China’s cabinet agreed last month to revive financial incentives for consumers to trade in their passenger cars to help increase demand. Vehicle demand in China has slowed this year with the economy and as consumers push back purchases in anticipation of government stimulus.

Mr Chen whose department oversees industry planning said “The issue has to be studied closely, such as what vehicle types are eligible. There’s not much meaning to subsidize farmers to drive sedans.”
The finance ministry said on May 29 that the government will spend as much as CNY 2 billion a year to develop alternative-energy vehicles to reduce fuel consumption.

Source - Bloomberg

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Posted By : admin on Wed, 27 Jun 2012
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