BEIJING — China will introduce new incentives and loosen car-purchase limits to stimulate the flagging automobile market amid its broader efforts to revive the virus-hit economy, according to a government circular.

Commerce authorities across the country should roll out measures such as giving out subsidies to new car purchasers and those who trade in their old cars for new ones, according to the circular jointly released by the Ministry of Commerce, the National Development and Reform Commission and the National Health Commission.

The authorities are also asked to remove restrictions on the entry of pickup trucks into cities, facilitate the trading of used cars, and organize car sales promotions in a bid to "stabilize and expand car consumption," the circular said.

Cities that have car-purchase restrictions should "improve their restrictive measures," it added.

China is stepping up targeted stimulus measures to support the economy, which has been slowing partly due to the novel coronavirus disease (COVID-19).

China's auto production and sales plunged during the first two months, down 45.8 percent and 42 percent, respectively, year-on-year, according to data from the China Association of Automobile Manufacturers.