Finally, China's Car Market Decline

Written By kentoznoism on 3/16/2011 | 6:57 PM

After 16 months of consecutive sales increase, eventually in the second month in a rabbit this year, passenger vehicle market (Passanger car) in China fell thin, only 0.4 percent to 880,027 units compared to the same month last year. World oil price hikes, restrictions on new car purchases and the cessation of direct government subsidies had a negative impact on market volumes.

According to China Association of Passenger Vehicles (China Passenger Car Association) as reported by autonews, yesterday (7 / 3), hoisted the Chinese government to small-car sales tax from 7.5 percent to 10 percent starting January 2011. Elimination swap program (trade-in) on the outskirts of China and the planned increase in petrol prices February 21 last, also complicate the situation.

"We believe the market sentiment changed because lonjakkan petrol prices and interest rates. All of narrowing the economic space, nearly 60 dealers in 35 cities experienced declining sales," says Scott Laprise, an analyst at CLSA Asia Pacific in Beijing, China. Laprise memperediksi growing car market in China will decline only 9 percent from the previous 13 percent.

Last year, China's auto market touching record highs over the period up to 18.06 million units, up 32 percent compared to the previous period. Mild form of tax incentives that scrolling of 2010, making almost all the principal world enjoy lonjakkan automotive sales in the country with the largest market in the world.

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