The local government promised a 15 percent subsidy to farmers purchasing light trucks, minivans and trucks with carrying capacity under five tons produced in Jilin.

Su Dongliang, a 48-year-old farmer who owns a 3-mu (0.2 hectares) orchard on the outskirts of Jilin City had considered buying a vehicle to transport fruit three years ago but decided against it.

The policies have him rethinking his options.

"Thanks to the subsidy policy, I can spend 26,200 yuan to purchase a FAW Jiabao minivan with an original price of 30,800 yuan, saving 4,600 yuan," says Su.

The policy helped FAW Group sell 1,411 Jiabao minivans this February, a big jump from the 123 it sold in February last year.

In Liuzhou, Guangxi Zhuang Autonomous Region, a major production base of minivans and light trucks, the favorable policy is driving up sales there.

According to a SAIC-GM-Wuling dealer in Liuzhou city, the policy of halving purchase tax on vehicles with engine capacity of less than 1.6 liters, which took effect on January 20, has cut the cost of mini commercial vehicles by 2,000 to 3,000 yuan.

The government subsidies knocked the price down a further 3,000 yuan.

"We sold about 30 vehicles a day on average in February but we sold 50 on March 1, 70 on March 2 and 80 on March 3," said Qin. "Farmers account for more than 60 percent of those purchases."

The subsidy policies are regulated through an agreement between the auto manufacturers and seven government offices; the Ministry of Finance, the Ministry of Commerce, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Public Security, the General Administration of Quality Supervision, the Inspection and Quarantine and the State Administration for Industry and Commerce.

(China Daily March 30, 2009)