Money
Car stock grows in frosty auto market
By Huang Yuli (China Daily)
Updated: 2010-04-12 08:21
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Auto salesmen wait for customers at Yayuncun car market, one of the largest in the capital. [Wang Jing / China Daily] |
Car buyers shouldn't need to queue for months to collect their new cars, experts predict of Beijing's cooling car market in April.
"We've got adequate stock," said a salesman surnamed Wu of the Runshitong Hyundai 4S store.
"Buyers can collect their cars without waiting," he said.
A manager surnamed Cao of Beifangxinxing Chang An Suzuki 4S store, told METRO customers had to wait three to four months to collect the new Alto last year, but the delay had now eased to one month.
"Customer flow dropped in April although sales still exceeded those of the same period last year, which was during a period of slow recovery after the economic crisis. However, it was still not as high as the end of last year, when the public rushed to catch the last batch of vehicles holding purchase tax discounts," he said.
The central government attempted to stimulate the car market last year by providing a 50 percent discount on vehicle purchase tax of 1.6 l and smaller displacement engine cars. This year the discount dropped to only 25 percent. A buyer now has to pay 2,000 yuan more for a 100,000 yuan car.
Cao said the gloom would be evident at the Beijing International Automotive Exhibition, which will open on April 23.
He said that although potential buyers are expecting new car models at the show, the discount adjustment will inevitably hamper sales.
"Policies always have the greatest impact on the market," he said.
Despite the lack of tax breaks, salesman Wu said 2,000 yuan is still not a big problem for those who can afford a car. He suggested the reason the market dropped was because holidays are periods of great sales but the weeks before and after are typically slow.
Both Wu and Cao promised to conduct a variety of sales promotion techniques, such as offering discounts and free accessories.
Cao predicted sales will rise in middle and later half of the month, as people prepare for road trips over the May holiday.
