The proposals would help to prop up the world’s largest car market which is facing its first decline in more than two decades as the recent trade war with the US dents consumer spending. To offset the slowdown, the Chinese government is proposing to halve the tax on car purchases to 5%. Although the cuts are only likely to apply to smaller-engine vehicles like those in Volkswagen and Ford vehicles, luxury carmakers were also riding on the coattails of the uptick in sentiment.
Demand for European supercars is soaring in China, where an estimated two billionaires are ‘created’ every week.
Earlier this year, Aston Martin announced a £600mln investment drive into the country earlier this year to try to take advantage of its growing popularity in the region.
Aston Martin shares were up 2% to 1,440p in later afternoon trading, while in Milan, Ferrari shares were up by a similar percentage.