Possible car sales caps trigger boom

• Source: CNTV.CN
• [08:55 December 10 2010]
• Comments

Now let's turn to car sales in China where the market started to pick up in November.

In Beijing's Yayuncun car market, sales were steady from April to October before seeing a surge last month. Analysts estimate 90,000 vehicles were sold in Beijing alone in November and the figure is sure to exceed 100-thousand this month.

The Yayuncun car market is just an example of what car markets have been through in China this year. When the market was sluggish, even its nearby parking lot was full of unsold cars. But now it's seeing a dramatic upturn in sales and is again bustling with prospective buyers.

A Yayuncun car market dealer said, "People are talking about what the Beijing municipal government is going to do to limit the number of plates available for new cars. So many are thinking about buying a car before the new policy is introduced.

Rumors suggest the Beijing government will end the preferential policy on vehicle purchase tax and set a limit on the number of cars on the roads, prompting many customers to bring forward their purchases.

A car buyer said, "We've heard that the government will raise vehicle purchase tax and end the preferential policy. It's more affordable to buy a car now. So we've rushed to the market."

At car markets around the country, many popular types of cars can no longer be reserved.

There's also a shortage of luxury cars. In China's major cities including Beijing, Shanghai and Guangzhou, customers have to pay an extra 30 to one hundred-thousand yuan if they want to get such a car within two months.