The Price of Cars Will Steady Decline in 2011

The national development and reform commission on January 13, published on its web site for the national 36 large and medium-sized cities, according to the monitoring data in December 2010 China vehicle market prices are generally slightly lower, the domestic auto prices small drop, automobile import prices fell slightly deep.

Monitoring center that because of the recent cast policy fremantle effect causes release of relatively concentrated market demand, supply, so the price of cars is evidently decreased by previous years earlier, is expected to 2011 car prices will continue to steady decline situation.

Policy is introduced: 2009, in response to the financial crisis in Chinese economy great influence, keep economic upstream automobile industry to the stable, stimulate domestic consumption. The Chinese government related department has issued a series of policies, including 1.6 L the following models to 5% reduction purchases duty is immediate, China\’s car market at a draught, international decline with international derailment domestic thriving. Obviously, policy regulation has reached the expected effect, 2010 how? Recently the government gives the answer: China reduction of 1.6 liters and below small-engine passenger cars car purchases duty policy extend to the end of the decade, reduced to 7.5% collection (note: the former state purchases duty the collection standard for 10%). This policy is clearly for 2009 market car free can carry a response.

Policy goal: from national level, purchases duty suddenly 5% drop apparently state budget has been a shock, since market has because policy coattails and thriving, and the policy should also retreated. Can policy cannot change once said didn\’t, and consumer also need an adaptive processes, so in a series of consumption tax according to the proposal, the compromise 7.5% is \”the most to the situation.\” The global economy is picking up, China market for less than beg trend, increase obviously intends to point purchases duty of market regulation insane. Increase of domestic market to 2.5% purchases duty can have a fall fire effects? Judging from the current response, obviously not. And this policy also contains the 2011 May return to 10% of may, by 2011, China market out big accident words will be flourishing still.

Policy comment on: for 7.5% purchases duty collection strategy, to tell you the truth, is no technical content, but it reflects the Chinese automotive market strong adaptability, has the government do guarantee auto market return afraid to give an issue? Economic stability, as the mainstay of automobile market could not collapsed. From 5 percent to 7.5 per cent purchases duty levied embodies now auto market have warmed. But unfortunately, even if there are a lot of Copenhagen international accused (of course, every country is for own consideration majority), China\’s purchases duty policy was not enough for flexible, in small cars and energy conservation and environmental protection of car to differentiate between encourage didn\’t any substantial progress. According to the fuel consumption and emissions to make purchases duty policy also flow as a paper moonshine.

2009 government policies make China market in financial crisis in the stands firm and policy leading role is self-evident. But at the same time, the policy has led to massive preferential let thepopulace street-cred, so the whole of the 2009 automobile market emerged in short supply situation, which obviously contrary to the government macro-control the ultimate goal. At the noise of the 2009 into the 2010, is a series of new proterozoic in the implementation of the policy of starting point. Policy is always related to people\’s livelihood, 2010 car in China policy has produced the car development guidance how? Market changeable, policy is concerned about car groups have to issue of concern, 2010 and what directivity policy? New implementation of the policy we can also peculiarities 2010 of the Chinese automotive market roughly skeleton.

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