China’s Shanxi Province has implemented a special reward scheme to boost the consumption of automobiles. Purchasers of new China 6 emission standard passenger vehicle as well as commercial vehicles in the province will receive incentives of CNY4,000-8,000 ($567-1,133) from Apr 1 to Dec 31, 2020.
For commercial vehicles including cars of over 7 meters, heavy trucks and tractor purchases attracted an incentive of CNY8,000. Passenger cars including SUVs, MPVs purchases will receive CNY6,000 and mini-bus and other commercial vehicles will receive incentive of CNY4,000. The incentives will be paid at the time of purchase through the car sales organization.
Most vehicle showrooms and distributors in China have reopened in April. In March, daily average passenger car sales slid by 36pc compared to prior-year period and overall sales for the month were down by 40pc from the prior year, according to China’s auto association (CAAM). The COVID-19 pandemic had badly sales in February with sales down 79pc from a year ago. CAAM expects overall auto sales to drop by 5pc this year.