China’s Ministry of Industry and Information Technology (MIIT) plans to draft a stimulus policy to increase the consumption of automobiles in the country. The Ministry has called for suggestions from all stakeholders of the auto sector.
Xin Guobin Deputy Minister of MIIT made this announcement at a manufacturing industry resumption meeting in China on March 30. To overcome the challenge of insufficient demand in the auto sector MIIT is working on policy recommendations to stabilise and increase automobile consumption in China.
Since Feb 19, the overall operating rate of China’s auto industry has increased from 60pc to 97pc and the rate of re-employment has increased from about 50pc to 82pc, said Guobin. Guangdong, Shandong, Jilin, Hainan and Shenzhen provinces and cities such as Ningbo, Hangzhou, and Nanchang have issued specific policies to support the auto industry. The government is working to improve transportation facilities to speed up the movement of raw materials and personnel within the country.
The ministry also plans to draft a policy for new energy vehicles.
MIIT directed authorities to speed-up the process of material transportation permits in Hubei province. Automakers Volkswagen, BMW, GAC, Sinotruk were unable to secure spare parts from suppliers based in Hubei.
The production and sales of automobiles in China declined sharply in February with production down by 79.8pc at 285,000 units and sales down 79.1pc at 310,000 units compared to the prior year. In the Jan-Feb period, the production and sales of automobiles were 2.04mn and 2.23mn, respectively, down by 45.8pc and 42pc, respectively, from the prior year period.