Over 20 Chinese cities suspend or adjust auto subsidy programs as state funds deplete: mainland media reports

More than 20 Chinese cities have suspended or adjusted their automobile trade-in subsidy programs, as the fourth batch of national subsidy funds totaling 69 billion yuan (HK$76.04 billion) is further depleted, mainalnd media China Business Network reported.

The report said central Hubei province in mid-November adjusted the distribution method of the daily subsidy vouchers to four batches, with the final batch scheduled for December 5.

Each batch of vouchers will be issued until they are all claimed.

The China Passenger Car Association said all provinces have completed adjustments to their subsidy policies. As policy coverage narrows and support weakens, its effect on boosting the auto market is gradually declining.

"Compared with the significant policy-driven boost seen in the same period last year, current market growth momentum is insufficient," the CPCA said in a report.

Cui Dongshu, secretary general of the CPCA, noted that most provinces have made various adjustments to their subsidy programs. 
After several rounds of subsidy-driven purchases in previous months, a significant overdraft effect has already been formed, and some consumers are taking a wait-and-see approach, he said.
He predicts a stable automobile market in December.

In contrast, the China Automobile Dealers Association expects a significant month-on-month increase in retail sales in December, driven by the year-end shopping season and the concluding subsidy programs.

After a brief slowdown in October, new energy vehicle sales are expected to return to rapid growth, becoming the most stable supporting force for the year-end auto market, the association said.