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China's central bank announced in August a plan to reform the LPR mechanism to better reflect market changes in its latest move to guide borrowing costs lower to support the real economy.

China will launch proactive fiscal policies next year to improve the efficiency, quality of government investment and stabilize the economy amid a possible slower fiscal income growth, said Finance Minister Liu Kun.

China will prove crucial to the brand's future. It has been smart's second largest market and is the world's largest electric car market. Besides, it is home to over 100 cities that have more than 1 million people, an ideal market for small-sized vehicles.

China's Vehicle Traction Battery Industrial Development Action Plan, issued in March, set out an industrywide target of 100 gWh (gigawatt-hours) annual battery production capacity by 2020.

China's "aggressive" tax cut plan for 2019 highlights the central government's determination to promote high-end manufacturing and could motivate enterprises to increase investment despite the temporary slowdown in industrial profits, experts said on Tuesday.