TTVMA Proposes Plan to Subsidize Scrapping Old Cars to Gov't

Taipei, Dec. 21, 2012 (CENS)--The Taiwan Transportation Vehicle Manufacturers' Association (TTVMA) is proposing a subsidies program the government to increase new-car sales on the island by about 100,000 units per year, according to industry sources.

The trade association will ask the government to subsidize NT$40,000 (US$1,333) for each buy to replace a car older than 15 years, coupled with automakers' rebate of NT$10,000 (US$333) for each new car sold.

TTVMA anticipates that the proposed subsidies program can raise new-car sales in Taiwan by 100,000 units per year, also elevating the gross domestic product (GDP) by 0.416%.

The association said that weak consumer confidence prevents consumers from buying new cars, which the proposal can reverse as well as stimulate the domestic economy.