There are reports of China's growing across the state motor vehicle sector, the new tax regime in the discussion following the withdrawal of tax subsidies earlier this year for the 1.6l cars and down, until, of course, the population was hoping for a reduction in what is but one of the highest levels of responsibility in the world, the trend is towards reducing the demand to maintain high taxes.
Then there is the anti-congestion policies implemented in Tier 1 cities across the country, with drivers in Shanghai have to pay for expensive local register or find themselves doomed to failure in more peak periods. Other cities such as Guangzhou are considering the implementation of "alternative travel day" policy, leaving the driver with the choice of driving on Mondays, Wednesdays and Fridays or Tuesdays, Thursdays and Saturdays with a free-for-all on Sundays.
combined with the ever increasing more deals at the local level is the large saloon cars already had the thinnest of margins, it is possible that the new car market in some places will come to a halt until over hosiery brought under control.
But that's not all doom and gloom, and here are five reasons that the 2011 can still be a big year for the automotive industry in China.
in car ownership is still very low - It is estimated that by the end of 2010 will be about 86 million vehicles on the road in China, and it is true that it predstavljaporast of 38 % in the past year alone. However, there are still 1.3 billion people in China and that means fewer than 1 in 10 people owns a car and many do not have access to personal transportation except bicycles.
wage growth - even if taxes go up, wages are likely to grow faster at least for the next few years. China's middle class growing considerably richer at the annual level, and they want the benefits that increased status that includes the freedom to travel as they chose.
Line 2, 3 and 4 cities will be the focus of economic policy going forward - which means that while Beijing, Shanghai, Shenzhen and Guangzhou may be obstacles to achieving the anti-Car resolutions, many of which are less well known at the time will be increased demand for feed and market opportunities.
The emphasis on better technology company - on China's supplies nothing but sweat shop products are more countries next five years plan focuses on skilled in the emerging industry and the industry has traditionally paid more and require more skilled staff. The good news for dealers who can work out where these companies will cluster.
Freedom of movement is increasing - it used to be that it was difficult to move around in China for the Chinese citizens that this would be a nightmare of paperwork and registering lot of these requirements are missing, and more likely to be dropped in the next few godina.Više people can move more because they need transportation.
The success of the recent auto show in Guangzhou shows that the Chinese enthusiasm for car ownership is certainly not dimmed, and it is definitely still on the market with massive opportunities for the next year.
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