A Bloomberg report states that in order to meet demand, Beijing dealers of Toyota and Honda vehicles would need more sport-utility vehicles. Meanwhile, hybrid models are said to be selling at a loss. At a Honda dealership in the capital city's Chaoyang district, customers would have to wait two months before the CR-V SUV arrives, enabling the outlet to charge a premium for the model. Customers are expected to not buy the Civic hybrid unless its 270,000 yuan ($39,550) sticker price is lowered.
General manager Chen Guang Jun of the Beijing Zhongye revealed that his Toyota dealership only has two RAV4 SUVs left in stock, which would have to be improved. So far, there have been no complaints received about Toyota's recall of certain modes in China to fix faulty gas pedals.
At the 2010 Beijing Auto Show, executives of Toyota and Honda both disclosed that they were unconcerned about the slowing down of China's sales growth if the tax cut is phased out at the end of this year.
The government tax breaks don't cover larger models but despite that, these cars are selling well in China. According to a deputy president of the joint venture with Dongfeng Motor Group, Honda's factory in Wuhan, central China, has gone on overtime to build 1,013 CR-Vs a day due to high demand for the SUV model.