At least six Chinese municipalities and cities have paused their trade-in subsidies for car purchasers in June, Reuters reported Wednesday, citing government announcements.
The move could slow the sales of new cars in China, the report said.
Zhengzhou and Luoyang halted the subsidies as funding from the central government was running out, while Shenyang and Chongqing attributed the pause to capital efficiency, Reuters said.
Xinjiang also paused its subsidies, the report said.
China's biggest local automakers include Dongfeng Motor Group (HKG:0489), SAIC Motor (SHA:600104), Chongqing Changan Automobile (SHE:000625), BAIC Motor (HKG:1958), Guangzhou Automobile Group (SHA:601238, HKG:2238), Great Wall Motors (SHA:601633, HKG:2333) and FAW Group (SHE:000800).
The country's top new-energy vehicle manufacturers include BYD (SHE:002594, HKG:1211), Li Auto (HKG:2015), XPeng (HKG:9868) and NIO (HKG:9866, SGX:NIO).
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