Subsidy policy to spur commercial vehicle market

The government's subsidy plan for trade-in vehicles is expected to spur stagnant commercial vehicles sales in the following months, just as favorable taxation and subsidy policies for rural consumers boosted passenger vehicle sales in the first half, analysts said yesterday.

Consumers will receive a subsidy of between 3,000 and 6,000 yuan per vehicle to replace passenger cars, vans, and trucks that do not meet the country's emission standards, or for those vehicles that have been on road for 8 to 12 years, according to the policy released yesterday by the Ministry of Commerce.

The total trade-in subsidy, mainly targeting light commercial vehicles, is likely to cost the government around 5 billion yuan.