China launches nationwide car purchasing initiative following May sales report

June 8, 2023 9:50 AM EDT

In a significant effort to bolster demand in the world's largest automobile market, China unveiled Thursday a comprehensive nationwide initiative aimed at promoting car purchases, signaling a strong commitment to supporting the automotive industry.

The announcement from the Ministry of Commerce follows the release of data indicating a 7.3% increase in passenger vehicle sales in China from April to May. Despite positive growth, results fell short of the robust recovery that policymakers had been anticipating.

The commerce ministry said that they would coordinate with local authorities and implement targeted policies and measures to boost car consumption and will actively encourage financial institutions to introduce measures that facilitate lending for auto purchases.

The campaign aims to target different car sales categories, including new and used vehicles. Additionally, it will prioritize the replacement of gasoline cars with new energy vehicles (NEVs) like battery-driven cars and plug-in hybrids.

Although the specific funding details were not mentioned, the ministry is committed to allocating resources to support and drive this initiative forward.

By Michael Elkins | [email protected]

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