Report: Analysts say that Chinese car sales may drop next year
By Andrew C., 30 Aug, 2010. 0 Comments
Many carmakers are getting by partly because of the continued sales boost the auto industry is experiencing in China. However, analysts fear that this interest may end as early as next year. The analysts theorize that government incentives propelled car sales and since there are rumors that they will be phased out in 2010, then it just might signal the end of the sales boom.
In an Autonews report, Qin Xuwe, Orient Securities analyst, said that auto sales rely heavily on policies and so it‚ difficult to predict sales outlook for next year. It‚ still unknown whether the government would renew the tax cuts for small cars after they expired at the yearend. Continued after the jump!
If the Chinese government decides to continue its scheme cutting sales tax on mid-range sedans next year, then it‚ another happy year for carmakers worldwide. Reuters reports that China fears its economy will stretch beyond its capacity and may very soon choose to put an end to the tax incentives.
We reviewed the figures and we discovered that last September, vehicle sales rose by more than 83%, exceeding 1 million units sold. Nevertheless, next year‚ sales aren‚Äôt expected to surpass the 2009 record. That‚ because the 2010 sales will be referred to a much bigger market. Analysts however have said that the industry will still grow, albeit at a slower pace.
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