China Auto Association Lobbies Government for Stimulus Measures
- Stock market rout had impact on vehicle demand, official says
- Group suggests halving purchase tax, raising vehicle quotas
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China’s state-backed auto association is lobbying the government to introduce stimulus measures after vehicle sales fell for a fifth straight month following a stock-market rout.
The association has suggested to the government that it cut by half the 10 percent tax on vehicle purchases, raise the limits on the number of new cars that consumers can buy, and accelerate the replacement of old autos to bolster demand, according to Shi Jianhua, deputy secretary-general of the China Association of Automobile Manufacturers.