Cars to the countryside program to run for another year

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During the start of the world economic turn down a year ago, the Chinese government stepped in and began a program of subsidies that would introduce the automobile to rural buyers and give the beleaguered Chinese car industry a much needed boost. The government encouraged small car makers to sell small displacement MPV’s and other versatile vehicles in a bid to encourage sales and also improve the environment by taking Soviet era tractors off the road.
On Jan 26th various Government Ministries came together to announce that the cars to the countryside program will continue for another year, which is expected to account for car sales of 1.6 million vehicles and 8 billion RMB of subsidies over the next 12 months.

The cars to the countryside program is aiming to lift the quality of life for farmers, and increase automotive sales, and this time is set to end on 31st December 2010. A parallel program, ‘motorbikes to the countryside’ has also been extended but to 2013.