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Posts Tagged ‘china auto incentives’

Car Sales Unexpectedly Sliding, China Opts for U.S.-Style Cash-for-Clunkers Program

Incentive program includes buses and trucks.

by on Jun.08, 2011

China has become the world's largest automotive market, cities like Shanghai choked with traffic.

With the nation’s automotive market showing some unexpected signs of weakness, nervous bureaucrats have rolled out an incentive effort loosely modeled upon America’s controversial Cash-for-Clunkers program.

After years of double-digit sales gains, what is now the world’s largest automotive market posted 14% decline in sales last month compared to April.  But whether that was a temporary aberration or signs of a longer-term slowdown remains to be seen.

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Either way, it is creating deep worries in a country where automotive demand has helped fuel a booming economy.  And industry leaders are fretting about the billions they are spending to expand capacity to match earlier sales expectations.

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China Closes ’09 as World’s Largest Car Market

Expected to remain leader in 2010.

by on Jan.08, 2010

China takes the global sales crown for 2009.

Decades before most observers imagined it possible, China closed 2009 as the world’s largest national car market, government officials reporting sales topped 13.5 million, compared with just 10.9 million for the recession-wracked United States.

While U.S. sales plunged more than 20%, last year, demand for automobiles surged 40% in China, the state-run Xinhua news agency reported.  That reflects not just a strong economy but a policy of direct intervention by the Beijing government, which rolled out a series of incentive programs designed to keep the industry’s momentum going.

Among other things, normally-hefty taxes were slashed on vehicles with engines smaller than 1.6 liters.  The government also encouraged the sale of alternatively-powered vehicles, such as the new plug-in hybrids sold by Chinese maker BYD.  And subsidies were offered to assist the country’s farmer purchase vehicles.

Could the Chinese market hit 40 million? Click Here.

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