The Chinese government is considering plans to breathe new life in their still growing, but sputtering auto market. “Industrial growth is sharply declining and we have not seen a turning point yet. We feel a lot of pressure,” Industry Minister Li Yizhong said at a recent news conference in Beijing. The Minister laid out several initiatives, “but gave no indication any measures had been decided or when they might take effect,” Gasgoo says. The possible steps are:
– A $2.2 billion package of subsidized loans, targeted at improving technology and cutting energy use.
– Beijing might buy surplus steel to help producers and give aid to steelmakers for upgrading technology as demand plummets.
– Beijing is considering ways to revive car sales by cutting taxes, offering low-interest loans or forcing older vehicles off the road.
At the same time, China’s Ministry of Commerce plans to support the currently disappointing auto exports with a seven point program, their Zhi Luxun said today. According to a Gasgoo report, the points are:
First, probably provide a multi-billion $ program to stimulate auto exports.
Second, encourage medium- and small-sized enterprises to export more through training, certification, and trade show attendance.
Third, give incentives for auto companies to get certified abroad and to introduce foreign technology.
Fourth, grant credits to export-oriented auto companies.
Fifth, encourage auto companies to reduce export risks by taking advantage of commercial banks and insurance companies.
Sixth, continue support of the national export bases for both automobiles and auto parts.
Seventh, offering information for auto companies, such as export destination information, industry policies, tax policies and some other important market information.
But again, these measures are “being studied.” Which means they may come. Or they may not. Welcome to the land of ambiguity.
Bertel, I think you’ve said you’re based in China.
I was in China for six weeks on a contract with my employer in late 2005. I spent time in Beijing (traffic was absurd), Hong Kong (traffic seemed organised), Changsha (mayhem) and Jiangmen (walking).
We observed many new multi-story residental buildings under construction, none of which appeared to have provisions for hundreds of cars to park.
I admit, I wasn’t there to wonder about car parking, but it occurs to me if there is to be a Chinese car culture, where are all these cars being kept when they’re not being used?
Has the government suggested a “saturation” at all? How much growth is there for yet more cars?
WTF brought you to Changsha??????? Contrary to popular belief, all multistory apartment buildings are built with multistory garages (they all have very sturdy blast doors – seem to be built for a dual purpose.)
All I can tell you: The growth has just begun.
He! Psst! Bertel, aren’t you forgetting something? Today, December 15th, a day that will live on in infamy (for the western carmakers) BYD rolls out the world’s first affordable mass produced PHEV, beating the Volt to it’s game by at least 2 years:
http://www.gasgoo.com/auto-news/1008718/BYD-F3DM-electric-hybrid-car-goes-on-sale.html
I know that TTAC isn’t really into alternative drivetrains, but still I would have expected some mentioning of this event. It being the start of a new era of motoring and all….
The model has bigger headlights than the car!
Gardiner Westbound : The model has bigger headlights than the car!
The car has those new small LED headlights.
I like their idea of forcing older cars off the road. And if they use another older car to force the first older car off the road, they’ll have two wrecked cars that need replacing.
Then there’s the item about encouraging car companies to take advantage of banks and insurance companies.