China Auto Stimulus Policy Continues

News from China Association of Automobile Manufacturers (CAAM for short as below) reports that China continues its auto incentive measures in the year of 2010 to boost related industry moving forward. Related measures will be extended to the end of this year. CAAM says the stimulus policy has a little bit change. The purchase tax increases from 5 percent to 7.5 percent and the subsidy of trade-in auto rises from between 3,000 and 6,000 yuan to between 5,000 and 18,000 yuan per unit.

Thanks to the auto stimulus policy in 2009, China auto sale hit record high and the auto market was very hot. Chinese auto industry got a very rapid development and the national economy run very well last year. According to Chinese government’s short-term plan, it will add more new energy field test cities. The field test cities will be from 13 to 20.