China aims for 10 million units in both vehicle production and sales this year, according to an online government document concerning detailed automobile support package.

China's automobile industry is to yield an average 10 percent growth for its production and sales in the next three years, said the document, released on Friday.

The stimulus package was unveiled by the State Council, the Cabinet, on Jan 14, but the detailed plan was not released by the government until March 20.

The auto support package was among nine others for the country's 10 industry initiatives by the government since January in a bid to cope with the downturn in the short-term, and upgrade its industrial structure for the long term.

In a three-year development plan, the document said by 2011, passenger cars with an engine displacement below 1.5 liters would take 40 percent of the market, and those below 1 liter would have a 15 percent share.

Analysts say smaller-engine cars use less oil and are more environmentally-friendly. They are also cheaper compared with big-engine, gas-guzzling cars.

China would also form two to three auto giants with capacities reaching 2 million in vehicle production and sales, and four to five smaller companies with capacities greater than 1 million in the next three years through mergers and acquisitions, according to the document.

Source : english.chinabuses.com

Editor : July

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Tags: Auto Stimulus Plan