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China Automakers Join Government With Incentives to Boost Sales

  • Covid-19 lockdowns have put the brakes on consumer spending
  • Car companies offering to subsidize purchase taxes among moves
Baojun E100 electric vehicles outside a SAIC-GM-Wuling Automobile Co. Baojun E100 Customer Experience Center, in Liuzhou, China. 

Baojun E100 electric vehicles outside a SAIC-GM-Wuling Automobile Co. Baojun E100 Customer Experience Center, in Liuzhou, China. 

Photographer: Qilai Shen/Bloomberg

Automakers in China are following the government in rolling out more incentives to boost car sales, which slowed as the country battled Covid outbreaks with strict lockdowns that have sapped consumer spending. 

To give sales a lift, the likes of SAIC Motor Corp., Volvo Car AB and Geely Automobile Holdings Ltd. are taking steps such as covering or subsidizing the purchase tax on vehicles, providing preferential financing rates, extending loan repayment dates and offering to cover insurance costs.