The Chinese will allocate money to buy cars

The Chinese will allocate money to buy cars

April 15, 2020 0 By autotimesnews

The Chinese car market, which was the first to encounter the coronavirus pandemic, is experiencing hard times – sales are recovering, but at a very slow pace. Therefore, the local government has taken incentive measures.

Recall that most of the Middle Kingdom car market crashed in February, when sales declined immediately to 79%. At the same time, according to the results of the first quarter of the current year, the decrease was fixed at 42%. March became more successful – last month only 43% fewer new cars were sold than a year earlier.

It is noted that the automotive industry is key for the country’s economy – about 40 million people are directly or indirectly involved, and the total income is more than 1 trillion US dollars. In addition, until recently, the Chinese market was the first in terms of sales of new vehicles.

In order to stimulate the industry, local authorities decided to extend the tax benefits for electric car manufacturers for another 2 years, and cash subsidies in the amount of $ 1.4 thousand for each car will be issued to customers. Business hopes demand for cars will return when schools open and the summer travel season arrives.