China likely to roll out incentives for auto purchases-paper

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

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

China's auto industry has been hit by slowing demand, withannual growth in vehicle sales weakening to around 8 percent inAugust. That compares a rise of over 80 percent rise for thesame month three years ago. September data is due later in theday.

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

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

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


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