Vehicle Sales

On March 3, Guangdong Province released a stimulus package to boost economic growth amid the coronavirus epidemic in which the government will offer a 10,000 yuan (US$1,419) subsidy to private consumers of electric vehicles and 3,000 yuan (US$426) to consumers of vehicles with stage-6 emission standards. Other local governments nationwide also released policies to boost car consumption and clear out warehouses. In January, 1.69 million new vehicles were sold across the country, a drop of 21.5 percent year-on-year. In recent years, the vehicle industry has been a pillar industry in China, accounting for roughly 6.7 percent of the country’s GDP growth. Analysts say that in the next decade, the prosperity of China’s auto sector hinges on its GDP growth, second-child baby boom as well as growing demand from consumers in small cities and counties. Autonomous vehicles will play an increasingly important role in bolstering the sagging market.