GM - Auto sales expected to pick up in China after policy shift

Stimulus measures announced by the Shanghai government on Tuesday should help a number of automakers, per analysts in the region. In a list of 50 new measures to stoke the economy as it emerges from lockdowns, the government focused on promoting greater consumption. Primary among these promotions were increased quotas for passenger car license plates and reductions in taxes for passenger car purchases. The reductions add to increased focus on bringing EVs to the broader population outside of wealthy urban centers. For passenger cars broadly, the purchase tax will be cut in half to 5% for cars up to a purchase price of 300,000 yuan ($44,867). “Based on the announcement, we consider that this preferential policy covers the vast majority of ICEs, so the scope exceeds market expectations,” CLSA Ltd. analyst  Aaron Li wrote in a note to clients. “Combined with recently introduced auto purchase subsidy policy and the policy

For further details see:

Auto sales expected to pick up in China after policy shift