Shares of VW, PSA dropped after association says Chinese rebates may end

Article by Christian A., on December 11, 2010

Shares of Continental AG, Volkswagen AG and PSA/Peugeot-Citroen dropped after the China Automobile Industry Association said at a recent briefing in Beijing that Chinese incentives for buying cars will not be extended and will likely expire at the end of December 2010.

Xiong Chuanlin, the vice secretary-general of the association says that, in 2009, the association wrote to the government requesting an extension for the tax incentives.

Preferred shares at Volkswagen, whose largest market is China, dropped as much as 7 percent, PSA declined by as much as 4.8 percent and Continental dropped as much as 6 percent.

In November 2010, deliveries in China surged 29 percent. But this trend is expected to change as stimulus measures in China, the world's biggest auto market, including subsidies for rural car-buyers, a consumption-tax rebate for smaller vehicles, and incentives to trade in older models are all due to expire at the end of the December 2010.

China is a growing market for Continental and PSA. Yu Bing, an automotive analyst at Pingan Securities Co. in Shanghai, said that consumers who expect the stimulus policies to be discontinued in 2011 are bringing forward purchases before time runs out. [via autonews - sub. required]

If you liked the article, share on:

Topics: vw, psa, china

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019