Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Chinese Version   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home Email this story   Print this story
 
Light-vehicle sales drop 3.7% on weak April demand for small cars
Automotive News China | 2017/5/12

China's light-vehicle sales slid 3.7 percent year on year to 1.72 million units in April, as Beijing's higher purchase tax dampened demand for small cars.

On Jan. 1, the central government raised the purchase tax on vehicles with engine displacements of 1.6 liters or smaller to 7.5 percent from 5 percent last year.

In April, sales of vehicles in this category fell 10 percent to 1.14 million, according to the China Association of Automobile Manufacturers. Cars and trucks affected by the higher tax accounted for 66 percent of China's light-vehicle sales last month.

Thanks to stronger demand in the first quarter, China's light-vehicle sales through April rose 2.5 percent to 7.67 million. 

Partly because of the tax increase, the manufacturers' association has modest expectations for industry sales. In January, the association predicted that light-vehicle deliveries would increase 5 percent this year.

That growth rate is relatively flat compared with 2016, when industry sales increased 14 percent. Last year, demand picked up after the central government temporarily halved its 10 percent purchase tax on small cars.

The tax cut -- which was enacted in October 2015 -- was intended to rejuvenate stagnant car sales. 

In 2018, Beijing will restore that tax to 10 percent.

Related Stories
  • Light-vehicle sales rebound in June on higher crossover demand
  •     --Published:2017/14/7
     
  • Light-vehicle sales dip 2.6% in May
  •     --Published:2017/13/6
     
  • Ford dangles new discounts as sales fall in May
  •     --Published:2017/8/6
     
  • Light-vehicle sales edge up 1.7% in March
  •     --Published:2017/14/4
     
  • Why Chinese car sales ran out of gas
  •     --Published:2017/28/3
     
  • China auto sales rise 8.8% in first 2 months despite higher sales
  •     --Published:2017/14/3
     
  • Auto sales rise 8.8% in first 2 months despite higher sales tax
  •     --Published:2017/10/3
     
  • Light-vehicle deliveries dip in January
  •     --Published:2017/14/2
     
  • Here's why you shouldn't panic over January's weak sales
  •     --Published:2017/10/2
     
  • BYD plans to sell passenger cars in U.S. in 2-3 years, exec says
  •     --Published:2017/20/1
     
  • Light-vehicle sales projected to rise 5% in 2017
  •     --Published:2017/17/1
     
  • China light-vehicle sales jump 15% in 2016 behind tax cuts on small vehicles
  •     --Published:2017/13/1
     
  • Global automakers' 2016 China sales vroom; dull 2017 looms
  •     --Published:2017/10/1
       
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    ICP06057291