China’s government will attempt to stimulate new car purchases by increasing the number of auto leasing and car rental operations and boosting the second-hand car market, according to a statement by Premier Wen Jiabao in the speech he delivered at the 11th National People’s Congress opening session last week, the Xinhua news agency reported.

The measures are to be part of an overall effort by the government to encourage healthy consumption in the automotive market, stimulating consumer spending and helping to drive growth of the economy.

Growth in China’s automotive industry slowed to 6.7 per cent last year, ending five consecutive years of double-digit growth, figures from the China Association of Automobile Manufacturers revealed.

In 2008, 9.38 million vehicles were sold in China. Sales of passenger vehicles increased by 7.27 per cent, to 6.76 million units; and sales of commercial vehicles increased by 5.25 per cent, to 2.62 million units, the association reported.

Other measures noted in the report include encouraging retailers to open outlets in expanded areas, allocating subsidies of 43 billion yuan for new low-rent housing, and expanding consumption in the areas of culture, recreation and tourism – among others.