China’s demand growth to outweigh impact of end of tax breaks

Article by Christian Andrei, on December 30, 2010

Carmakers, including General Motors Co., Geely Automobile Holdings Ltd. and BYD Co., said that the rising demand for cars in China will overshadow the impact from the end of tax incentives. According to Geely and BYD, new models and other government measures that back car sales will offset a higher sales tax recently announced by the government.

Last week, Kevin Wale, GM’s China president, said that deliveries will increase, boosted by the nation’s economic growth and the rising number of new car buyers.

Wale added that even when government incentives will be removed, there is still a “tremendous underlying demand.”

China’s industrywide vehicle sales rose by 46% last year to 13.6 million and 34% during the first 11 months of 2010 due to measures such as consumption-tax cuts, subsidies for rural car-buyers and incentives to trade in older models.

China will raise the tax on vehicles with engines of 1.6 liters or smaller to 10% from 7.5% next month. In 2009, the tax was 5%. China’s total vehicle sales including trucks and buses jumped to 16.4 million in the first 11 months of 2010, according to the China Automobile Industry Association.

It’s expected that auto sales will rise to 18 million units this year, giving it the title of the world’s largest auto market for the second consecutive year. [via autonews - sub. required]

Topics: china, sales

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries