Subsidy schemes drive rural vehicle demand

Rural China, thanks to Beijing's targeted stimulus measures, is developing its love affair with the automobile…at least low-cost ones with engines below 1.6l. Earlier this month Li Yizhong, minister of the Ministry of Industry and Information Technology, directly attributed auto market rural subsidy programmes to this year's surging vehicle sales - up 63% year-on-year in July to reach 1.09m - the fifth consecutive month unit sales exceeded the 1m mark. In the first seven months, 7.17m vehicles were sold, 23% more than the same period last year.

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Other Articles on this Issue

• Capital Intensive China

  Land deals set to transform rural China

• Macro View

  Rich in rural promise

• Postcard From No 528

  Rustic stock picks and Goldman Sachs

• Forbidden City

  Rural reform has a strong political backing

• Funds Data

  Taiwan optimism peaked?

• The Big Call

  Rural economy set to thrive

• Consumer China

  Betting on the rural consumer

  Sending white goods to the countryside

• Financial China

  Rural finance taking off

• The Best of Chinese Commentators

  Inflation: pork-led?

  Resources: to tax or not to tax?

• Guest Column

  China's Sustainability March

• View issue