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Auto makers post sharp climb in sales
February 6, 2009, Friday
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Print Edition
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AUTO makers in China reported a substantial sales increase last month following a government decision to halve the car purchase tax, the China Association of Automobile Manufacturers said yesterday .
On January 14, the government announced its plan to lower the purchase tax on cars with engines under 1.6 liters from 10 percent to 5 percent from January 20 to December 31 in a bid to spur the domestic auto industry. The tax cut, taking effect before the Lunar New Year holiday, a major sales season in China, fueled car buyers' enthusiasm for low-emission vehicles with engines under 1.6 liters. Major domestic brands, including Chery, Geely and BYD, which have models under 1.6 liters recorded high sales in January.
On January 14, the government announced its plan to lower the purchase tax on cars with engines under 1.6 liters from 10 percent to 5 percent from January 20 to December 31 in a bid to spur the domestic auto industry. The tax cut, taking effect before the Lunar New Year holiday, a major sales season in China, fueled car buyers' enthusiasm for low-emission vehicles with engines under 1.6 liters. Major domestic brands, including Chery, Geely and BYD, which have models under 1.6 liters recorded high sales in January.
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