China Gives Car Buyers Cash to Help Revive Auto Sales
The coronavirus pandemic has definitely hit the global auto market hard — especially in China. The country saw a 42 percent drop in car sales during the first quarter of 2020 compared to last year. Here’s a brief overview of the current sales slump and what China is doing to help boost the auto industry.
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Somber stats
Per CNN, China has usually sold more than 6 million new vehicles around this time of year. Right now, it’s total auto sales figure equates to approximately 3.7 million. In February, car sales plunged 79 percent with a sales total of just 310,000 vehicles. Though March sales rose significantly, with 1.43 million units sold, the country’s auto industry is still vulnerable.
Incentives to help boost car sales
To this end, China has started giving cash to consumers who are purchasing a new vehicle. Beijing extending subsidies and tax breaks for another two years and apply to new electric and plug-in hybrid vehicles.
In addition, at least a dozen cities or provinces are also implementing incentives, primarily in the form of cash subsidies. Some regions are even giving consumers as much as $1,400 to put toward their new car.
Early signs of growth
Though China definitely has a long road ahead of it as it tries to revive the auto market, some new stats indicate nascent growth. According to Bloomberg, weekly car sales in the country rose for the first time since the COVID-19 lockdown. And the China Passenger Car Association is confident that the overall vehicle market will match last year’s level by the end of this month.
We’ll have to wait a bit longer to see the full impact the incentives have on increasing Chinese car sales. But these incentives combined with automakers’ new, longer-range EV models give consumers attractive reasons to purchase an eco-friendly vehicle. This, in turn, should help feed the country’s gradually-recovering auto sales figures as 2020 continues to play out.
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Whitney Russell resides in Dayton, though her spirit can be found beach-bumming in Puerto Rico (the land of her half-Puerto Rican heritage). When not crafting car-related content, she can be found chasing after the most amazing toddler in the world, watching her “beaver” of a husband build amazing woodworking projects, hanging out with two crazy dogs, and visiting family and friends. She also enjoys traveling, crafting, and binge-watching period dramas when time allows. See more articles by Whitney.