China's Ministry of Commerce, together with seven other ministries, has jointly issued suggestions for stimulating the domestic auto market.

The suggestions call on local governments to implement the policy of cutting by half the vehicle-purchase tax for cars whose engine volume is no more than 1.6 liters.
The suggestions put special emphasis on boosting auto sales in the vast rural areas after the Chinese central government decided in January to make available about 730 million U.S. dollars to subsidize rural residents who buy automobiles.

With the preferential policy for the rural market, some car makers have chosen the countryside as the ideal location to release their new models to market.

Lu Jianhui, vice chief manager of Chery Auto, explains.

"The purchasing power of rural residents has become stronger and stronger. So we believe that rural areas will certainly become the dominant source of consumption in the future."

Meanwhile, domestic auto makers have enhanced their services in rural areas. Automaker SGMW based in south China's Liuzhou city, has recently founded the country's first village-level automotive maintenance and repair station in Hebei province.
With convenient access to the latest car models and better after-sale service, many local farmers have taken a greater interest in purchasing a new vehicle and are quite pleased with the development.

"It's the first time for me to see a latest car model in a village. The arrival of the cars in villages will benefit our farmers."

"It's very convenient to repair a car at the automotive maintenance station and repair stations established by auto makers. More importantly, the components provided by them are very good."