China vows to maintain support for new, used auto market

The commerce ministry assertion did not mention the extension of subsidies for what China calls new power motor vehicles — a application that has been credited with supercharging the sector’s growth.

The leap in EV purchases also arrives as output disruptions and source chain bottlenecks relieve, assuaging shortages. The China Passenger Vehicle Association, which releases June facts on Friday, has forecast NEV sales will access 5.5 million this yr.

Authorities on Thursday also pledged to glance at measures to aid the trade and circulation of used vehicles. Overall car ownership levels are continue to very low in China vs . designed markets these kinds of as the U.S. and Australia and the nation does not have a vibrant next-hand market.

Encouraging car or truck income in China’s extensive rural spots was a different space officers reported would be examined.

Automobile use could see “relatively fast” progress as insurance policies bolstering the sector get result, Vice Commerce Minister Sheng Qiuping stated.

“These measures are very sensible and target breaking down some institutional boundaries that restrain the progress of the automotive market in the long operate,” he claimed.

Bloomberg contributed to this report.