The southwestern city of Chongqing will subsidize purchases of vehicles made in the city, becoming the first local government to offer such incentives.

Consumers will receive as much as 3,000 yuan ($471) per vehicle, but the policy will be limited to models with an engine capacity of less than 1.6 liters.

The subsidies may boost sales for the venture between Ford Motor Co, Mazda Motor Corp and Chongqing Changan Automobile Co. The program is expected to boost new car sales by 30 billion yuan in the city this year.

Agencies-China Daily