A Nissan dealership in Shanghai in March 20, 2019. Light-vehicle sales in China, the world's biggest car market, have been falling for the past two years and the coronavirus has brought showroom and new-vehicle sales to a virtual halt in many parts of the country.
Xiangtan, a city of 3 million people in the southern province of Hunan, will offer people 3,000 yuan ($429) in cash if they buy a car made locally by Geely, state media Hunan Daily reported on Sunday.
Light-vehicle sales in China, the world's biggest car market, have been falling for the past two years.
The coronavirus has killed more than 2,800 people in China and forced the temporary shutdown of many factories last month.
Guangzhou's neighboring city of Foshan -- where Volkswagen has a plant with FAW Group -- announced last month that it would offer cash of 2,000 yuan for purchases of new cars and 3,000 yuan for replacement of existing cars.
Foshan's government said it will also offer subsidies to help offset the marketing expenses of auto companies.
CAAM expects China's auto sales will fall by more than 10 percent in the first half of the year due to the impact of the virus, a senior official told Reuters.