Economy

Auto subsidy fuels consumption by 20.5B yuan in 1H

(Xinhua)
Updated: 2010-07-09 19:05

BEIJING - China's auto replacement policy has boosted domestic auto spending by 20.5 billion yuan ($3 billion) in the first half of the year, said the Ministry of Commerce (MOC) Friday in an online statement.

Related readings:  Beijing gives out green car subsidies  Auto sales outlook solid  China's H1 auto sales up 30% year-on-year to 7.18m  China's mammoth consumers may wear off green efforts

Relevant departments had handed-out 2.4 billion yuan in subsidies that had resulted in 174,000 vehicles being replaced in the first six months this year, said the MOC in the statement.

In a bid to accelerate the elimination of high-emissions and polluting vehicles and stimulate automobile consumption, the government rolled out the "old car for new" subsidy last June -- encouraging people to replace their old cars.

Consumers who trade-in their used small-and-medium-sized trucks and some types of mid-sized passenger cars for new ones can receive subsidies ranging from 3,000 ($349.2) to 6,000 yuan.

The subsidy will last till December 31, according to an earlier statement posted by the MOC in June.

China Association of Automobile Manufacturers (CAAM) said Friday that Chinese auto sales rose 47.67 percent year on year to 9.02 million units in the first half of the year.