New Chinese policies offering subsidies for commercial vehicles
2012-06-26 Source：Automotive News
Summarize：In an effort to stimulate growth in the commercial automobile market, China introduced a new set of policies earlier this month offering subsidies for owners buying new vehicles to replace their old ones. As the state of the commercial vehicle market is intricately tied to the status of the economy overall, it is more easily affected by macroeconomic changes than the passenger automobile market.
www.chinabuses.org: In an effort to stimulate growth in the commercial automobile market, China introduced a new set of policies earlier this month offering subsidies for owners buying new vehicles to replace their old ones. As the state of the commercial vehicle market is intricately tied to the status of the economy overall, it is more easily affected by macroeconomic changes than the passenger automobile market.
Ever since 2008, growth in the commercial vehicle market has been lagging behind that of passenger vehicles. In 2008, when the global financial crisis was in full swing, the commercial vehicle market grew only 5.3 percent, while the passenger vehicle market increased by 7.3 percent. Both growth rates were lower than anticipated.
In response to this, the government introduced a slew of new policies to encourage market growth in late 2008. The government put aside four billion yuan ($584.86b) to implement the policies, which included new 'old for new' and 'down to the countryside' subsidies. In 2009, growth rates in both the commercial and passenger vehicle markets increased to 28.4 percent and 52.9 percent, respectively. Growth in the former increased another 1.5 percent the following year.However, several of the stimulatory policies were phased out by 2011. The effects on the automobile market, especially the commercial vehicle market, were quite noticeable. A total of 4.03 million commercial vehicles were sold that year, 6.3 percent less than 2010.
The growth rate is continuing to decline into this year. According to recent statistics, a total of 1.69 million commercial vehicles have been sold from January to May, 10.3 percent than the amount sold during the same period of time last year.
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