3,882
edits
Auto Industry Cyclicality: Difference between revisions
no edit summary
No edit summary |
No edit summary |
||
| Line 508: | Line 508: | ||
* '''Car sales in the country gained 33 percent in 2010 and 53 percent in 2009 thanks to Beijing's stimulus measure'''s, including tax incentives for small cars and subsidies for mini-van buyers in rural areas. The policies were scaled back in 2010 and scrapped completely at the beginning of 2011. | * '''Car sales in the country gained 33 percent in 2010 and 53 percent in 2009 thanks to Beijing's stimulus measure'''s, including tax incentives for small cars and subsidies for mini-van buyers in rural areas. The policies were scaled back in 2010 and scrapped completely at the beginning of 2011. | ||
* In 2009 and 2010, China undertook a 4 trillion Yuan fiscal stimulus, roughly equivalent to 12 percent of annual GDP. The “fiscal” stimulus was largely financed by off-balance sheet companies (local financing vehicles) that borrowed and spent on behalf of local governments.<ref>https://www.brookings.edu/articles/the-long-shadow-of-a-fiscal-expansion/</ref> | |||
* Beijing boosted purchases by slashing sales taxes on smaller, fuel-efficient cars and spending $730 million on subsidies for buyers of SUVs, pickup trucks and minivans. Stimulus spending on building highways and other public works also helped to boost sales of trucks used in construction.<ref>https://www.sandiegouniontribune.com/sdut-china-surpasses-us-in-2009-auto-sales-2010jan08-story.html</ref> | |||
* Back in 2009, Chinese authorities halved the tax to 5% for cars with 1.6 liter engines or smaller and raised it to 7.5% the next year before bringing it back to the original 10%.<ref>https://asia.nikkei.com/Spotlight/Caixin/China-automakers-call-for-stimulus-as-coronavirus-carnage-bites</ref> | |||
{| class="wikitable" | {| class="wikitable" | ||