A 30 percent cut in the consumption tax on the purchase of passenger cars is supposed to expire at the end of June, but the country will extend it until the end of this year.
In July 2018, the government slashed the auto consumption tax to 3.5 percent from 5 percent and has continued to extend it in an effort to increase domestic demand.
Asia’s fourth-largest economy is on a recovery track on the back of brisk exports of autos and chips.