(Yicai Global) March 17 -- A district in Chengdu, southwestern Sichuan province is subsidizing car purchases up to a maximum of CNY150,000 (USD21,735) per vehicle to boost car consumption.
Longquanyi district, which is home to 10 automakers and over 500 parts companies including FAW-Volkwagen, Volvo and Geely, will grant CNY100 million worth of subsidies in total, the local government said.
The promotion will cover pure electric, hybrid and plug-in vehicles and last until June 30. However, the exact discount amounts and the eligible car models have not yet been specified.
“We expect that the eligible models will be those made in Chengdu,” said a FAW-Volkswagen dealership in the city, where many popular cars such as the Sagitar, Jetta series, Toyota Asian Dragon, Peugeot 5008, and Volvo XC60 are made.
According to promotional materials, Volvo is offering discounts of up to CNY150,000 (USD21,760), Peugeot-Citroen Automobile as much as CNY70,000 (USD10,143), Lynk & Co Auto around CNY25,000, Dayun Auto up to CNY30,000, FAW Toyota as much as CNY61,000, Hongqi Auto around CNY71,000, FAW-Volkswagen up to CNY23,500 and Geely Auto as much as CNY13,000.
A FAW Toyota dealer in the city said they are eagerly anticipating the promotions and are waiting for more details to be released.
Last year, the district produced 980,000 vehicles with an output value of CNY154.1 billion (USD22.3 billion). Electric cars made up 40,000 of the total, a jump of 36 percent from a year earlier.
Editor: Kim Taylor