Traffic easing measures boost BJ auto market

• Source: CNTV.CN
• [09:17 December 15 2010]
• Comments

Beijing's hope of easing traffic jams is boosting the capital's auto market, as people seize the last chance of freedom before the expected restrictions. Sales of both new and second-hand cars have risen dramatically.

Enthusiastic car buyers can be seen everywhere in Beijing. The frenzy even causes traffic jams on the road to the city's largest auto sales market.

Inside, potential buyers are busy making a purchase. Their enthusiasm is cheering auto dealers.

One auto dealer said "Our sales have increased by as much as 80 percent from same time last month."

One potential car buyer said "The preferential purchase tax may be canceled next year. We may also have to pay tax on a license plate. So I want to buy one before these measures are introduced."

The buying fever is putting pressure on supplies, with dealers saying they are running out of cars. Many test cars have even been booked, not to mention these popular models. Consumers now have to pay extra money to order one, and they may also have to wait until the end of the month to get behind the wheel.

One auto dealer said "For example, consumers have to pay 60-thousand yuan more to buy an Audi Q5. They care less about prices now. But the major problem is that we are running out of in-store cars."

The mania has also boosted sales at second-hand auto markets. The cheaper cost as well as drive on purchase are just what consumers want now.

Insiders believe overall sales in December will extend last month's upward trend when sales of new cars increased by a third to nearly 96,000.