Shanghai Daily. China will offer incentives for scrapping old cars and buying news ones in an effort to re-invigorate the new car market, which declined 3.8% in November, according to an unnamed official with the Ministry of Commerce.
In Shanghai, a similar plan has already worked. New car sales rose more than 10 percent at a local Volkswagen dealer, which began offering car scrap bonuses of 3,000 yuan (US$428) a month earlier.
The ministry’s plan is among several measures to bail out the country’s auto industry. Other planned steps include tax cuts on car purchases and improved credit services for car transactions.