Chinese Farmers Keeping Car Sales Rolling


So says Xinhua:

JILIN CITY, Jilin, March 2 (Xinhua) — As China rolls out its 5-billion-yuan (730 million U.S. Dollars) stimulus for carmakers, one city is pioneering its own package to lure rural buyers – and farmers are coming out strong.

LIFELINE TO CARMAKER

The pioneer is Jilin City, in the northeastern Jilin Province, where FAW Group, China’s largest automobile company, counts on farmers to buy more than 70 percent of its Jiabao brand mini vehicles.

As the production base for the 0.97-liter to 1.3-liter Jiabaos, the city will benefit from central government’s subsidies to farmers to replace their three-wheel vehicles or outdated trucks with small, 1.3-liter or less vehicles.

But plummeting sales have made it necessary for Jilin Province, where FAW is based, to throw a lifeline to the carmaker before the central government’s money trickles down.

How come Chinese farmers make do with tiny 1.3l minivans, but American farmers need V8 full size trucks?

ash 010 web avatar Chinese Farmers Keeping Car Sales Rolling

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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