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

Article by Christian A., 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

Recommended

In the automotive industry, most brands will do what they can to expand their offerings to be present in every potential niche there is. The goal is clearly to increase...
by - April 30, 2017
Just days after unveiling the refreshed 2018 Toyota Yaris hatchback to the North American public at the 2017 New York Auto Show, the Japanese company is now disclosing how much...
by - April 30, 2017
The next generation Volvo XC60 will be soon on its way to dealerships and customers as the Swedish carmaker has already commenced production of the mid-sized sports utility vehicle at...
by - April 30, 2017
In September 27, 2016, Porsche initially filed for a patent that is the “Unique Active Rear Diffuser”. And earlier this week, on April 27, 2017, the United States Patent and...
by - April 29, 2017
The Insurance Institute for Highway Safety (IIHS) has given its Top Safety Pick+ award to the redesigned version of the 2017 Kia Cadenza. This was a result of excellent a...
by - April 29, 2017
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