The state will introduce credit support policies to stimulate car consumption

When the automobile market becomes an important engine for stimulating domestic demand, the combined policy support will be introduced. Yesterday, the reporter was informed that in view of the rapid recovery of China's auto industry, the authorities are considering the 2011 abolition of small passenger car purchase tax in half levy the preferential policy. In order to ensure the steady growth of automobile consumption, the competent department intends to introduce auto credit support policy, encourage car companies to set up auto finance company, so as to improve the proportion of consumer loans.　　Industry insiders believe the move will benefit more consumers outside small-footprint passenger cars and help boost Chinese car sales. Total, director of information resources development at the national Clearing House, said the authorities were considering policies to encourage car lending, such as encouraging auto finance companies to issue corporate bonds. Rollei, secretary general of China Auto Circulation Association, said the new auto credit policy would directly support auto finance companies and auto credit business units. In particular, the state will directly support auto finance companies by means of low-interest loans, but the major commercial banks are not within the scope of the support. He pointed out that "the proportion of Chinese loans is too low, the current proportion is only 10%, the United States, India, the proportion of loans to buy 85%, 65%".