China to provide more vehicle subsidies

China’s Ministry of Finance announced that it would provide subsidies for rural residents who purchase motorcycles, light cargo vehicles and mini-buses. The plan includes a 13% subsidy for motorcycles from February 1 until January 31, 2013, subject to a maximum of RMB650 (US$95.23). From March 1 through the end of this year, Beijing said it could also give rural residents money to scrap motorized tricycles and low-speed cargo vehicles. The government said it is focusing on consolidating the country’s car industry, which a study by the National Bureau of Statistics of China said is thriving on the sales of sedans for private use. As such, it will be putting the development of hybrid cars on the back burner, as they are not selling as briskly as conventional cars. (April 12/ March 13, 2009)