Orders of low emission cars halved in new-year holiday
- Source: Global Times
- [16:34 January 04 2011]
- Comments
Dealers claim that orders of low emission cars were halved after the cancellation of the preferential policy on low emission vehicle purchase tax, according to the Guangzhou Daily.
A dealer of Chery Automobile also added that "there will be less promotional campaigns this year. But we dare not raise prices." However, the dealers have one last card: subsidy on energy-efficient vehicles. According to the relevant policy, buyers of some energy-efficient vehicles can enjoy a financial subsidy of "3,000 yuan ($454)."
During the new-year holiday period, SUVs became the hot product of many 4S stores, which a salesperson said are not affected by the cancellation.
The preferential policy on purchase tax was made effective in January 2009. According to the regulation, buyers of vehicles whose emissions equal or reach below 1.6L can enjoy a purchase tax of 5 percent of the total price. The number was raised to 7.5 percent in the beginning of this year.
Two years carrying out the policy made the Chinese auto market into the world's largest. However, its encroaching on traffic conditions, especially in big cities, is what made the government cancel the policy.
