China is going to impose a tax break on electric vehicles and remove restrictions on second-hand car sales, and will consider further measures to spur consumer demand for cars.
The ministry of commerce made the announcement as part of a joint statement with 16 other departments, including the finance and industry ministries.
The world's largest car market has been hit hard in recent months by stringent lockdowns in Shanghai and other parts of the country to curb the spread of Omicron coronaviruses variant.
As part of the new efforts, authorities lowered the auto purchase tax to 5% for cars priced under 300,000 yuan $45,000 with 2.0 liter or smaller engines.
Since 2014, buyers of certain fully electric and partly electric vehicles have not had to pay the purchase tax. A plan to reinstate it next year may be scrapped, the ministry said, confirming a position that was first flagged by the country's cabinet last month.
The ministry statement did not mention any extension of subsidies for what China calls new energy vehicles - a programme that has been credited with supercharging the sector's growth.
In May, Reuters reported that authorities were talking with automakers about extending the programme.
The commerce ministry said it would encourage the replacement of older vehicles and increase credit support for car purchases.