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China likely to roll out incentives for auto purchases-paper

Tuesday, 9 Oct 2012 | 9:16 PM ET

SHANGHAI, Oct 10 (Reuters) - China is likely to initiate a new round of incentive policies to encourage vehicle purchases in rural areas as it seeks to boost consumption and support a slowing economy, the official China Securities Journal reported.

China may give subsidies to buyers of mini-buses, cars and trucks with engine sizes of less than 1.3 litres, the newspaper said, citing unidentified sources.

China's auto industry has been hit by slowing demand, with annual growth in vehicle sales weakening to around 8 percent in August. That compares a rise of over 80 percent rise for the same month three years ago. September data is due later in the day.

In 2009, China unveiled incentive policies to help farmers buy automobiles but the scheme expired at the end of 2010.

(Reporting by Samuel Shen and Kazunori Takada; Editing by Edwina Gibbs)

((samuel.shen@thomsonreuters.com)(+86 21 6104 1789)(Reuters Messaging: samuel.shen.thomsonreuters.com@reuters.net))

Keywords: CHINA AUTO/INCENTIVE