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Economical Cars to Lead China's Auto Market

 

The advantages of economical cars as their low price, small body, low petrol consumption, durability, easy of running, low repair rate and lack of luxuries, and for all this, they will lead China's future auto market.

At present, on the domestic auto market, economical cars priced below RMB 100,000 are not selling very well. One reason is the lack of sufficient favorable measures in current auto consumption policies, other factors such as the wait-and-see attitude of potential purchasers also have an effect. In addition, some people have misunderstandings about economical cars, such cars are even forbidden in some cities because they are considered as harming the city's image.

People in the know say that China's autos are still at the introductory stage. After the issue of policies encouraging the consumption of small cars and the rise of petrol prices, economical cars will be favored by more and more consumers. On the world auto market, at least in the past ten years, sales of economical cars have been picking up. Large auto companies are busy developing perfect and economical cars, even the Benz company, famous for its limousines, is shifting to economical cars, and has launched the grade A car with the exhaust volume of no more than 1.4 liter.

At Auto China 2000, all the large foreign manufacturers exhibited their economical cars, fully demonstrating the attention and confidence of auto magnates for economical cars and the promising market. In order to save energy, many developed countries set favorable policies encouraging citizens to buy economical cars. In Europe and Japan, such purchasers are offered tax incentives.

The petrol price in particular, has climbed to 3.06 Yuan per liter, after the implementation of the fuel oil taxation, and petrol expenditure will become a key reference in maintaining a car. While saving energy is just one of the advantages of economical cars, it will in turn save consumers' money and expand the consumption of economical cars.

The latest statistics indicated that in 2000, the market share of private cars will increase from 55% to 60%, and in a developing country, for a long period of time, what most consumers can afford is precisely economical cars.

Governments favor the environmental protection feature of economical cars, the saving of fuel oil and low exhaust volume mean the government prefers economical cars when formulating auto consumption policies.

The Shenlong company will produce a more economical type "King of saving petrol", Shanghai Volkswagen is ready to manufacture economical cars, so is the newly-established Tianjin Toyota.
Therefore, the experts indicate that energy saving, and economical and environmental protection functions, have become the direction for auto development in the new century. Consumers, governments and manufacturers will all become the main purchasers of China's auto market.

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