China to Plan Rural Subsidies That Cover Passenger Cars
- Subsidies would be first since previous program ended in 2010
- China slashed a tax on smaller passenger vehicles in October
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China plans to introduce a new round of subsidies for auto purchases by rural residents that will cover passenger vehicles with engines smaller than 1.6 liters, according to people familiar with the matter.
The planned subsidies will also cover mini-commercial vehicles and light pickup trucks, said the people, who asked not to be named discussing information that’s private. The incentives will be the first nationwide funding for rural buyers since a program ended in 2010, and differs from the previous round because it covers passenger vehicles, the people said.