At least a dozen local governments have taken the lead from Beijing policies offering tax breaks and subsidies to boost car sales by devising their own incentives to stimulate auto industry retail activity, reported Caixin.
The Guangzhou municipal government announced last Friday, on the eve of a three-day holiday, it would release more car license plates for auction and help automakers to subsidize the successful buyers to purchase vehicles.
The odds of successfully getting a car plate in Guangzhou, capital city of South China’s Guangdong province, were about 0.6% in 2019. Car owners could also apply for licenses through a monthly auction if they didn’t want to wait for the lottery. The average successful bid price for a car plate in Guangzhou in February was RMB 17,086 ($2,420).
The latest incentives announced by Guangzhou encourage local automakers to support buyers’ bidding expenses. If a manufacturer subsidizes purchase of a car by RMB 10,000, around 60% of an average deal price, the company will get a RMB 5,000 benefit from the municipal finance ministry, according to Friday’s announcement.