Wally Edgar Chevrolet -- November Auto Sales In China Soar

Dec. 10, 2010 - PRLog -- BEIJING -Consumers are rushing to buy cars before the end of the year, amid industry speculation that the central government might raise the purchase tax on cars with engines of 1.6 liters or less to 10 percent, up from 7.5 percent.

Beijing and other cities also are considering measures to limit their vehicle populations to ease traffic congestion. According to the China Daily, November sales in Beijing jumped 33 percent as consumers rushed to beat possible restrictions on car ownership.

Car buyers' fears "that big cities will impose a limited number of car licenses... pushed up auto sales last month," said Rao Da, the association's secretary-general.

J.D. Power and Associates has projected that vehicle sales - including medium and heavy trucks - will top 18 million units in China this year, up about 30 percent from 2009.

The research company also predicts the central government will try to slow the auto industry's breakneck growth.

"It is clear that the government will tamper with the growth of vehicle sales," J.D. Power noted in its November China sales report. "The imminent revision of the vehicle and vessel tax will be the first measure to increase the cost of ownership..."

Nobody really knows, due to a sea of uncertainties about government subsidies.
It's time for the government to clarify its subsidy policies for next year, not just for the sake of market forecasters, but for the good of the industry as well.

In Beijing alone, November auto sales reached a record high of 96,000 units.
Because of unexpectedly strong demand, dealers are unable to meet customer demand. Moreover, dealers may face a slack first quarter - traditionally a hot season for car sales - after the consumer rush abates.

With only three weeks left in December, government officials should disclose their plans for taxes and incentives - the sooner the better.

SOURCE: Auto News China

Visit us at: http://www.wallyedgar.com
Call Toll Free: 1-866-933-9569

On Twitter @WallyEdgarChevy

# # #

About us: Celebrating our 25TH year. We serve multiple Counties in and around the Detroit Automotive Communities.
Located 3 miles north of THE PALACE of Auburn Hills in Lake Orion Michigan.We are ONE mile east of the GM ORION ASSEMBLY.1-866-933-9569