New-vehicle sales will rebound 4% in September, trade group predicts

Retail sales of new sedans, crossovers, SUVs and multipurpose vehicles will expand 4 percent from a year earlier to 2.1 million in September after declining five straight months, the China Passenger Car Association predicted. 

Driving the market rebound is the enhanced vehicle scrappage program, the trade group said Sept. 21. 

The Chinese government on July 25 raised subsidies under a scrappage program it rolled out for passenger vehicles in late April.

Under the revised program, the subsidy doubles to 20,000 yuan ($2,853) if consumers purchase new electrified vehicles while trading in fuel-powered vehicles with emission standards that fall short of State 4 rules — equivalent to Euro 4 — or electrified cars registered before April 30, 2018. 

The subsidy increases to 15,000 yuan from 7,000 yuan if consumers choose fuel cars with engine sizes of 2.0 liters or lower.

As of Sept. 19, the incentive program was implemented all across China, giving a boost to vehicle sales, the trade group said.