China may release new policies to encourage auto demand, says minister

China may release new policies to encourage demand for automobiles, with the country’s auto industry still dealing with difficulties, Xin Guobin, vice minister of industry and information technology, stated on Monday.

There is still not enough demand for automobiles, Xin informed reporters, as the outbreak of the coronavirus has significantly cut private consumption.

About 81,518 people in China have been confirmed as being infected with the coronavirus. The virus has killed 3,305 people in the country.

Auto industry account for a big portion of the country’s overall industrial production, and are the major driver of the retail sales.

The country is also working to help its auto spare parts producers resolve cash flow problems, Xin stated.