The northeast city of Changchun and the east China city of Ningbo have become the latest among the country’s major cities to incentivize the purchase of light vehicles produced locally.
Changchun will provide a subsidy of up to 4,000 yuan ($563) toward each new-vehicle sale and no more than 5,000 yuan for local residents who scrap an old vehicle for a new one, the city government announced Sunday.
To spur fleet sales, the maximum subsidy will reach 6,000 yuan for buyers who purchase at least five locally produced new vehicles with a price tag of 200,000 yuan or more.
The program applies to new vehicles purchased from March 20 to June 30, according to the announcement.
Ningbo will provide a subsidy of up to 5,000 yuan toward the sale of a locally built new vehicle from March 25 through September 30, the city government said Sunday.
The subsidy will only be available on the first 6,000 vehicles purchased from dealerships from each automaker that produces car and light trucks in the city.
Volkswagen Group, with plants in both Changchun and Ningbo, will be the main beneficiary of the incentive programs.
The programs also could provide a boost to Toyota Motor Corp., Mazda Motor Corp. and Geely Automobile Holdings: Toyota and Mazda build vehicles in Changchun while Geely operates a plant in Ningbo.
At least five other cities -- Guangzhou and Foshan, Changsha, Xitang and Hangzhou -- have introduced similar subsidies, ranging from 1,000 yuan to 5,000 yuan toward a new-car purchase.
In addition, Shanghai and Hangzhou have relaxed limits on new-car license plates to spur demand.
Because of disruptions caused by the coronavirus outbreak, new car and light-truck deliveries in China plunged 82 percent to some 224,000 in February.
In the first two months, industrywide new light-vehicle sales slumped 44 percent to 1.83 million, according to the China Association of Automobile Manufacturers.