It
has been officially declared by authorities that subsidies were given to boost
car and home appliances in rural areas. China Securities Journal added,”
coverage for fiscal subsidies to
autos sold in rural areas are to be considered by authorities.
It has been highlighted that cars with a
displacement under 1.3 liters and heavy-duty trucks will be included in the
preferential package as one-off subsidies for purchases of mini-buses with a
displacement of less than 1.3 liters and small trucks.
Sources close to Ministry of Commerce
(MOC) provide details that home appliances, especially small- and mid-sized
ones, will likely get subsidy support around the end of the year and large and
durable home appliances, such as TV sets, refrigerators and air conditioners,
are likely to be excluded.
First subsidy campaigns to boost home
appliance sales in rural areas were launched in 2007 and will expire in January
2013. With the implementation of subsidy campaign MOC data showed sales
revenues rising 21.8 percent year on year to 136.32 billion yuann the first
eight months of 2012.
Analyst added, “appetite for autos
in rural areas is large, as auto ownership in these areas is relatively low”
and further highlighted effort will be seen in auto industry to boost the
domestic market. Shares of companies in the auto and home appliance sectors
responded positively on Tuesday once the commencement of news.
