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03/18/2023 00:35
Volkswagen Automotive Co. offers cash grants 3.7 billion yuan ($537 million) to buy cars in China in response to changing emissions regulations in the world’s largest car market.
joint venture of Chinese SAIC Motor Corp Ltd and German concern Volkswagen AG is offering subsidies ranging from 15,000 yuan ($2,177) to 50,000 yuan ($7,258) on its entire range of vehicles through April 30. Guangzhou Automobile Group, Chinese partner of Honda Motor Co Ltd and Toyota Motor Corp also offers subsidies until March 31.
The Chinese government’s plans to tighten automotive emissions standards effective July 1 have put additional pressure on automakers and dealers to clean up stocks of cars that don’t meet the standards.
Sales of new energy vehicles, including hybrid vehicles with fully charged and plug-in batteries and gasoline, grew faster than the market as a whole, up more than 30% in February.
Price war likely to accelerate consolidation of fragmented local auto industrywhich has more than 130 car makers, but could also hurt profitability and innovation and stunt the entire sector, according to the state newspaper Economic Daily.
