China to Revive Cash-for-Clunkers Program in 2012

China is reviving its cash-for-clunkers program to boost slowing auto sales growth and its efforts to cut auto emissions, the Ministry of Finance announced Thursday.

Government subsidies will range from 11,000 yuan ($1,750) to 18,000 yuan ($2,800) for upgrades or trade-ins of passenger vehicles in rural areas, city buses and heavy trucks, according to a statement issued by the ministry and the Ministry of Commerce.

When the program was launched in July 2009 to help prevent the global slowdown from spreading to China, a total of 6.4 billion yuan ($1 billion) in subsidies were paid to new car buyers in 2010, spurred 49.6 billion yuan ($7.8 billion) in new car sales. Total auto sales in China surged about 23% in 2010 over 2009.

In 2011, after the program ended, China’s auto sales rose just 2.45% over 2010 to 18.5 million — the slowest growth in 13 years, according to the China Association of Automobile Manufacturers. So far this year auto sales are running about 13% above the same period of 2011.