China unveils plans to boost auto industry

BEIJING (Reuters) - China on Wednesday unveiled a wide-ranging plan to boost the domestic auto industry, one of the pillars of the world's third-largest economy.

The State Council, China's cabinet, said the measures would include the halving of sales tax on small cars and subsidies to encourage car owners to trade their old models for newer, fuel-efficient ones.

The government said it favored consolidation of the sprawling industry and would promote the mass production of electric-powered vehicles.

(Reporting by Langi Chiang; Writing by Jason Subler; Editing by Nick Macfie)