Filed under: Car Buying, China, Government/Legal, Plants/Manufacturing
China is determined to raise its annual domestic car sales to 10 million units this year, and also wants sales to grow by another 10% every year for the next three years. It aims to achieve those numbers with a comprehensive investment in the company's transportation sector, beginning with merging China's 14 major automaking groups into ten. Doing so, they say, will help the development of new products and seriously slash costs in overlap.
The government's long term vision of the auto landscape in China would be three large automakers selling more than two million vehicles per year and at least four smaller groups selling above a million. To insure that they all have buyers, Chinese authorities will buy more Chinese cars, subsidize rural purchasers with 5 billion yuan ($732 million) in subsidies,
offer rebates to those trading in used cars for new ones, eliminate road tolls and expand urban infrastructure. It's ambitious, for sure, but if the government can get the industry to go along, China certainly has the money to handle the rest.
[Source:
Gasgoo, Photo by China Photos/Getty]
Chinese gov't wants to consolidate major automakers to 10 originally appeared on Autoblog on Tue, 03 Mar 2009 17:57:00 EST. Please see our terms for use of feeds.
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04-03-2009, 02:20 AM
