China may top Germany as No.3 auto maker (Bloomberg) Updated: 2005-11-13 10:24 Sales to Rise
Sales of passenger cars may rise by about 12 percent to 3 million units in
2006, if the government holds back on a plan to impose a fuel tax, according to
the paper at today's conference. Sales of luxury sedans and cars with engines
larger than 3 liter capacity may drop if the tax is added, according to the
paper.
``Demand will probably lean toward cars with smaller engines, since the
government's policy is to impose rules to make it easier and cheaper to own
low-emission and small vehicles,'' said Zhu of the State Information Center,
affiliated with the National Development and Reform Commission.
Detroit-based GM sold 472,468 China-made and imported vehicles in the first
nine months of 2005, almost 28 percent more than last year. DaimlerChrysler said
it sold more trucks, Jeep sports-utility vehicles and 22 percent more
Mercedes-Benz luxury cars in China in the same period.
``The underlying sales growth in the vehicle industry is still strong after
months of pent-up demand,'' said Ma Liqiang, the deputy secretary general of the
National Development and Reform Commission. ``Rising gasoline prices merely push
buyers to choose smaller cars and won't hurt overall sales.''
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