China plans a second “cash for clunkers” scheme to stimulate sales of light trucks, vans and minibuses.
The scheme is modeled on an earlier one for passenger vehicles whose success caused passenger car sales to rocket ahead in the first six months of this year. In contrast, sales of commercial vehicles have stagnated.
Buyers will receive between 3,000 and 6,000 yuan that they can put toward the purchase of a new light commercial vehicle if they trade in an older vehicle.
Thanks to the success of the passenger car subsidy scheme, China surpassed the US as the world's biggest auto market in the first six months of 2009.
In the first six months, China sold 4.5m passenger cars, a 26% increase from a year earlier.
China has long been expected to overtake the US as the biggest vehicle market. But the economic slump and the well-known problems affecting the Big Three US carmakers have hastened that process by depressing American sales while China surged ahead.