Two more Chinese cities that rely heavily on car manufacturing plan to offer incentives to bolster auto sales, which have been hit by the fallout from the spread of the coronavirus, reported Reuters.
In the southern city of Guangzhou – where Japanese automakers Toyota, Honda and Nissan all have joint ventures with Chinese partners – the local government plans to reintroduce subsidies to encourage people to buy electric vehicles, it said last week. Previous local subsidies were scrapped last year.
Xiangtan, a city of 3 million people in the southern province of Hunan, will offer people RMB 3,000 ($429) in cash if they buy a car made locally by Geely, state media Hunan Daily reported on Sunday. Car sales in China, the world’s biggest car market, have been falling for the past two years. According to China Passenger Car Association (CPCA), another industry body, China’s auto sales dropped 89% in the first 23 days of February.