Chinese ministry encourages financial institutions to lower down payment ratios and loan interests for individual car purchases

China's Ministry of Commerce today issued guidelines for promoting auto consumption, saying it is actively coordinating with financial institutions to increase support for personal auto consumption credit, appropriately lowering down payment ratios and loan interest rates, and extending repayment terms.

This is the latest move by China to promote auto consumption, which mentions that China will increase the effective supply of auto financial services in rural areas and provide special financial services for auto inventory financing and supply chain finance.

The guidelines again mention that the existing auto purchase restriction policy should be optimized, saying that places that have implemented purchase restrictions should gradually lift them by increasing license plate targets and relaxing license plate application requirements. Other places should not introduce new car purchase restrictions, the guidelines said.

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The document encourages areas where purchase restriction policies exist to tilt plate quotas toward new energy vehicles, give support to carless families to purchase their first new energy family car, and study measures that do not restrict purchases.

Local governments can provide comprehensive incentives for consumers to purchase new energy vehicles, in charging, access, parking, and other usage aspects, to promote the electrification of vehicles in the public sector and consolidate the growth momentum of the new energy vehicle market, the guidelines said.

The document also encourages local governments to introduce measures to facilitate the charging of new energy vehicles and battery replacement and encourages places in a good position to introduce charging and battery swap infrastructure construction and operation subsidy policies.

State-owned institutions are encouraged to build charging facilities at a rate of no less than 10 percent of the number of existing parking spaces, the document said.

Local governments are also encouraged to give preferential tolls and parking fees for new energy vehicles, and charging pile operating companies are encouraged to appropriately lower charging service fees, according to the document.