Car buyers more rational
19/8/2004 11:09
Wendy Zhang/ Shanghai Daily news
The flourishing
car market over the past two years seems to slow down recently, with consumers
more rational in purchasing cars, eastday.com reported today.
Nearly 100
sedan models saw price cuts of 10 percent on average this year. Frequent price
cuts and the imminent tariff waive for imported cars next year have made many
prospective car buyers delay their plans, said an industry analyst, adding that
the central government's macro-adjustment policy has also pushed banks to
tightening their credit policies.
The domestic car market will continue to
slump at the second half of this year, while a new round of growth is expected
by early next year when a series of lucrative policies are issued, the analyst
pointed out.
The sales revenues for domestic car industry in the third
quarter of this year is expected to reach 738 billion yuan (US$89 billion), an
increase of 25 percent from a year earlier, with total profits valued at 630
billion yuan, up nearly 15 percent. The whole-year sales revenues are predicted
to hit more than 995 billion yuan, rising by 25 percent from the previous year,
with profits to reach 85 billion yuan, up nearly 15 percent.
The total car
output in China this year is expected to reach 5.6 million, an increase of
nearly 25 percent from a year before, driving up the cars kept in stock.
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