The coming end of half purchasing tax preferential policy brings a hot auto market

There are only two months when the half purchasing tax preferential policy for vehicles with displacement no less than 1.6L will come to an end. The latest production and sales data released by China Association of Automobile Manufacturers (CAAM) shows that, the number in September has a fast growth of more than 20% compared with August and the same period of last year.

In September, China’s auto production and sales volumes are 2.53m and 2.56m units respectively, increasing 26.8% and 23.5% with August, and increasing 32.8% and 26.1% with the same period of last year respectively. Some experts believe that the phenomenon is resulted by the small base in last year and coming end of preferential policy at the end of year.

Obviously, the preferential policy has brought about great growth of auto sales. Data shows that the policy has stimulated the recovery of whole auto market this year. Therefore, CAAM calls on the continuing practice of above policy in the next year, supported by auto companies and many experts.

It’s known that CAAM is now persuading National Development and Reform Commission and Ministry of Industry and Information Technology to list the preferential policy into plan and keep a long-time implementation. Ye Shengji, Vice General Secretary of CAAM said that, this will boost consumption, and will also guide the industry’s trend in the future.

If the policy can keep on implementation, it will be good news for manufacturers, dealerships and consumers. But some experts said the policy will overdraft consumption and will be bad for the long developments of market, only a long-time practiced policy can push the market transferring to small-size vehicles.