New Car Registration Doubles On Day 1 Of Tax Cut
Shanghai, January 21, 2009: (Gasgoo.com) On Jan. 20 when China began to halve the sales / purchase tax on 1.6L-minus vehicles to 5%, there were more than 210 new vehicles registered for license plates in Changchun city, more than doubling the less than 100 vehicles previously registered each day, xinhuanet.com reported today.
The traffic regulatory authorities in the city of Changchun, which is home to Chinese auto giant FAW Group, said that the license registration of 210 new vehicles on the first day of the tax cut didn't come up to expectations, though the number has doubled the previous daily registration. The peak of the new car registration is likely to come this weekend, when many potential customers will buy cars during the Chinese New Year vacation.
Amid the auto market slump, China's manufacturers and dealers of small cars expected to see faster growth in their low-emission vehicles after the Chinese government announced last week that sales tax on cars with engines smaller than 1.6 liters will be taxed at 5%, down from 10%, effective Jan. 20 and continuing until the end of the year.
The move was meant to shore up China's sluggish auto market affected by the global economic crisis. However, the direct results may come out over a longer period of time. Given many other factors, possible buyers are still waiting and seeing even though they warmly welcome the new stimulus plan.
China has recently unveiled a slew of support policies for its auto industry, but industry analysts said more measures will be needed to boost the Chinese auto market. Some experts have even proposed that the purchase tax should be scrapped for buyers of energy-efficient, eco-friendly vehicles.For more information please visit http://www.gasgoo.com