(Yicai Global) April 30 -- China is looking to stimulate vehicle purchasing by postponing new emission standards, extending new energy vehicle subsidies, and encouraging financial institutions to ease their car loan policies.

Some 11 regulatory agencies, including the National Development and Reform Commission, said in a joint statement issued yesterday that the China 6 emission standard for light duty-vehicles will kick in on Jan. 1, 2021 instead of July 1, 2020. Subsidies for NEVs will remain unchanged till the end of 2022 to promote increased use, including in public transport.

The agencies prompted lenders to come up with new services, reduce interest rates, and extend repayment periods for car buyers to rekindle consumption.

Chinese regions should remove all limits on interprovincial sales and exports of second-hand cars, the statement added. To spur growth, the value-added tax on second-hand vehicle sales will be cut to 0.5 percent from 2 percent from this May to the end of 2023.

Editor: Emmi Laine