State Loan Subsidies to Soften Car Market Fall
New state loan subsidies could help automakers sell at least 80,000 more cars this year, consultant PricewaterhouseCoopers said Tuesday.
That means that the market for new cars would shrink no more than 3 percent, a big improvement on the company’s previous estimate.
Interest rates on car loans recently reached 16 percent, fueled in part by the growing proportion that are overdue.
Manufacturers are facing a grim global environment. Sales fell in most of Europe and in a number of other key markets in the first half of this year, compared to the same period last year. China, the U.S., Brazil and Britain posted strong growth.