China's Local Governments Plan to Subsidize Rural Auto Purchases
- Previous subsidy program for rural buyers said to end in 2010
- Incentives to be combined with purchase tax cut in October
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Six Chinese provinces with a combined population exceeding the U.S. are among regions preparing to introduce subsidies for light-truck purchases, paving the way for an additional round of stimulus after a nationwide tax cut for auto purchases.
The local governments of Henan, Guangdong, Hebei, Qinghai, Guizhou and Jiangxi have included purchase subsidies in their work plans this year, according to published documents reviewed by Bloomberg News. The annual plans lay out policy priorities for the individual regions, which are mostly rural.