Xinhua quoted the Ministry of Commerce said China policy allowing car buyers to enjoy both a purchasing tax cut and old for new trade in subsidies which took effect on January 1st was generating good results with increasing applications and subsidy handouts.

The ministry in a brief statement said car buyers were actively responding to the new policy as there had been a significant rise in the number of subsidy applications. Since January 1st this year both the average daily number of subsidy applications and subsidy handouts were more than double from that before the new policy was introduced.

The ministry did not give specific figures on either the number of applications or amount of subsidies handed out. But it said as of February 12th more than 23,000 units had been sold, worth over CNY 3.3 billion in which buyers enjoyed the two incentives.

China adjusted the auto tax-cut policy and old-for-new program in January this year with a view to boosting domestic consumption.

Starting January 1st the purchasing tax rate on vehicles with engine sizes of 1.6 liters or less was set at 7.5%, 5% higher than last year but still 10% less than 2008 and before.

(Sourced from Xinhua)