“Nothing was confirmed about the report that Chinese government might introduce a new round of subsidies for car purchase in rural areas on the economic situation conference of the State Council,” said Dongyang, vice president and secretary-general of China Association of Automobile Manufacturers (short for CAAM), on the press conference on December 10.

 

It was reported by Bloomberg on December 9 that Chinese government might introduce a new round of subsidies for car purchase in rural areas which would cover passenger vehicles, minivans and pickups with displacement of 1.6 L or below. China’s first rural car purchase subsidies came around the year of 2009.

 

Besides, it also mentioned that China’s government also planed to strengthen construction of parking lots and charging infrastructures for alternative energy vehicles.

 

Stimulated by the report, China’s A-share of auto industry showed considerable upward trend that day with the shares of automakers like Changan, SAIC and BYD all rising a lot. However Dongyang denied the possibility of this policy the next day.

 

China’s government issued a preferential policy for passenger vehicles with displacement of 1.6 L or below that halved its purchase tax in October this year, stimulating the auto market in China. In November, according to the latest figures, the production and sales of automobiles continued to rebound and hit a record 2.50 million units respectively with rapid growth both on the monthly and yearly basis.