Chongqing to Subsidize Car Purchases in Rural Areas

The municipal government of Chongqing, home to about 30 million people in southwest China, has begun offering incentives to vehicle buyers in rural areas, according to news reports.

Rural Chongqing residents can receive as much as 3,000 yuan ($470) on the purchase of locally made small light vans and trucks with engines that displace 1.6 liters or less. Qualifying vehicles include those made by Chongqing Changan Automobile, its joint venture partner Ford and Lifan Industry Group.

An unidentified Changan executive tells Reuters that the program could be expanded to other regions of China.

The Chinese government reportedly is preparing to unveil a national program of subsidies on purchases of small, fuel-efficient vehicles and for buyers in rural areas.