Chongqing government has announced its detailed subsidy policies to encourage farmers to buy new cars and motorbikes. ‘Old for new’ subsidies will be provided up to a maximum of Rmb5,000 or 10 per cent of the sales price. Subsidies for purchasing cars will stay in force until the end of this year, while those for motorbikes will last until 31 January 2013.

The local government will be responsible for funding 20 per cent of the subsidy scheme, with the central government providing for the remaining 80 per cent. This is part of a national effort to help the car industry by boosting domestic demand. The national association of auto manufacturers reported total car sales of 1.15m in April, up 25 per cent over the same month last year.