In an effort to further boost its domestic market, China is expanding its rural purchase incentive programs for appliances and electronics to include automotive vehicles as well. Farmers will receive reimbursements of up to 5,000 yuan (about $730) per vehicle on purchases of light trucks or minivans and up to 650 yuan ($95) per unit for motorcycles, according to the Finance
Ministry.

Beijing continues to subsidize both domestic and foreign brands in its rural purchase incentive programs. General Motors Corp.'s mini vehicle joint venture, SAIC-GM-Wuling, is believed to be one of the biggest beneficiaries of the plan. The joint venture claims it supplies half of the Chinese market for light vehicles.

The "cars to the countryside" plan will cost the government 5 billion yuan ($730 million) and is expected to boost vehicle sales by more than 1 million units this year, which will help to push China's total auto sales above 10 million units for the first time.

Auto supplies such as Lingyun Industrial Corp. also will benefit from the plan, Chinese media said.