China launched a six-month campaign to boost car purchases and drive electric vehicle(EV) adoption in rural areas. As sales growth of EVs slows in the world’s biggest autos market.
The push, coordinated by the Ministry of Commerce, starts this month. It will encourage financial institutions to provide credit support for car purchases and local governments and automakers to offer subsidies and discounts. Especially on EVs, according to a government statement late Thursday.
One key priority is to promote EV adoption in the more than 11,000 counties and villages around China.
Beijing pledging to improve charging infrastructure in rural areas and nudge local authorities to launch support measures. Such as consumer subsidies, the statement said.
Top officials in China have repeatedly said they see EV adoption and spurring sales of cars more generally as very important this year.
Earlier this month, the State Council said it would extend a tax break for new-energy vehicle purchases.
While in May, the country’s economic planning agency and the bureau of energy issued a call for the building of more charging infrastructure outside of big cities.
Subsidies vary by region and it’s not clear how much will be provided for car purchases at a time when many local governments are managing tight budgets and soaring debt.
Nanjing, a second-tier city in eastern China with a population of 9.5 million. Said it will give out 35 million yuan ($5 million) in car consumption vouchers from June 6.
Thus, providing up to 5,000 yuan for each qualifying car purchase. Shenzhen, a technology and manufacturing hub. It has given out about 82 million yuan to consumers who bought clean cars this year.
Some auto manufacturers are heeding the call to promote EVs in rural areas.