Börse Express – China cuts taxes on some low-emission cars

BEIJING (dpa-AFX) – China wants to cut the tax on some low-emission passenger cars by half. This was announced by the Ministry of Finance on Tuesday on its website. Because Covid outbreaks and related countermeasures have shaken consumer confidence, the Chinese government wants to boost economic growth.

The tax cut will apply to low-emission cars sold from June to December. In addition, the vehicles may cost a maximum of 300,000 yuan (almost 42,000 euros), it said. The second largest economy wants to boost consumption after the strict corona restrictions. Banks should grant more loans.

Credit growth eased to its lowest level in almost five years in April, and several indicators are suggesting that May’s data will not be much better. Not a single car was sold in Shanghai last month as almost all car dealerships in the city were closed due to the corona lockdown.

For the German car companies, China is Volkswagen ,
Mercedes-Benz and bmw the largest single market. In recent years, the previously rapid growth in sales has slowed somewhat, and last year the scarce supply of chips in particular caused production problems./mne/bgf/jha/

 ISIN  DE0005190003  DE0007100000  DE0007664039

AXC0150 2022-05-31/10:44

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