The nation's "Automobiles to the Countryside" subsidy program will be formally implemented on March 1. The program will stimulate automobile consumption of at least 1 million vehicles throughout the year, according to automobile industry analysts. Each vehicle sold in the countryside is expected to get a subsidy of 3,000 to 5,000 yuan.

The Ministry of Industry and Information Technology (MIIT) clearly proposes to carry out "Automobiles to the Countryside"

MIIT issued the No. 1 document of 2009 this week, requiring that industrial and economic operations are completed well, ensuring a favorable beginning for the first quarter. The document clearly states that the "Home Appliances to the Countryside" and the "Automobiles to the Countryside" campaigns as well as subsidy policies for agricultural machinery and tools shall be carefully implemented.

It shows that following the "Home Appliances to the Countryside" project, the "Automobiles to the Countryside" campaign will be formally launched, in an effort to further boost domestic demand.

The "Proposals on Structure Adjustment of the Automobile Industry" was passed at the executive meeting of the State Council held before the Chinese New Year. It stipulates that from March 1 to December 31, 2009, the government will earmark 5 billion yuan for lump-sum subsidies to farmers who replace their three-wheel vehicles and low-speed trucks with light-duty trucks or purchase minibuses with a displacement of less than 1.3 liters.

Shen Yang, General Manager of SAIC-GM-Wuling Automobile, said in an interview with the People's Daily that this is the first time that the government has attached such great importance to boosting the demand of the automobile market in rural areas and the market for minibuses. It shows that the government has fully realized the fact that minibuses, as vehicles for ordinary people, are both appropriate and useful for the rural market, and that they can also drive the growth of the whole automobile industry.

By People's Daily Online