China Eases Rules to Spur Domestic Car Sales

China’s central government is urging regional governments to loosen sales restrictions to spur demand for new cars.

The guidance from the government’s State Council also asks local governments to buy more electric and other “new-energy” vehicles. The council’s website says the cabinet will explore programs to build more refueling stations in rural areas and develop policies that encourage investment in fuel wholesaling and storage businesses.

Passenger vehicle sales in China have declined year-on-year for 13 consecutive months, including a 5% drop last month. The government’s rollout in July of tougher National VI exhaust emission limits also has stunted sales.