Subsidies spur purchase of 8 mln cars, motorbikes in rural China in first 9 months
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The Chinese government paid 11.6 billion yuan (US$17.39 billion) in subsidies for the purchase of 8.11 million cars and motorbikes in rural areas in the first nine months of the year, the Ministry of Commerce (MOC) said Thursday.
The government subsidized the purchase of 2.08 million autos and 6.03 million motorcycles during the period, with 8 million yuan of subsidies paid for autos and 3.6 million yuan paid for motorcycles, the statement posted on the ministry's website said.
In the first three quarters, the stimulus program for rural residents boosted sales of cars and motorbikes to a value of 110 billion yuan.
China rolled out subsidy policies for rural auto and motorbike purchases in 2009 in a bid to lift rural residents' living standards and spur domestic consumption amid a fall off in exports during the global downturn.
Under the program, purchases of cars in rural areas attracted a 10 percent subsidy while purchases of motorbikes attracted a 13 percent subsidy.
In January 2010, China extended the car subsidy program to rural consumers for an additional year, meaning it will last until the end of 2010, while the subsidy for motorcycle purchases was extended to January 31, 2013.
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