China’s new-vehicle market rebounded strongly in June after a two-month pandemic-triggered lockdown in Shanghai was lifted and new government incentives rolled out earlier this month.
Industry-wide shipments of new cars and light trucks rose about 21% to 2.45 million last month, the China Association of Automobile Manufacturers said on Wednesday.
The tally also represents a 34% increase from May volume, the trade group added.
Reflecting sharp declines in April and May, when Shanghai and other regions were under strict lockdowns to contain COVID-19 outbreaks, new vehicle sales through June fell 7.1% in year-on-year to reach around 12 million, according to CAAM estimates.
To revive the market following the latest coronavirus outbreak, Beijing on June 1 halved vehicle sales taxes to 5% for new light-duty gasoline vehicles with engines up to 2, 0 liters and priced at 300,000 yuan ($44,709) or less.
The tax reduction will remain in effect until the end of the year.
Provincial and municipal governments nationwide have also introduced subsidies ranging from 5,000 yuan to 15,000 yuan to encourage local consumers to replace gasoline-powered cars with fully electric vehicles.
