|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Monday 15th of June 2009
May 11, 2009

China car sales boosted by tax incentives


by Kay Murchie
”China

Car sales in China rose 37% in April, boosted by tax incentives.

The rise in sales means China has now overtaken the USA to become the world’s largest automotive market, after total vehicle sales increased by a quarter to 1.15 million.

In a bid to revive flagging car sales, the Chinese Government announced buyers of smaller cars would receive a tax incentive.

In addition, India has announced an increase in car sales, driven by factory gate tax cuts and lower borrowing costs.

In April, car sales rose 4.2% to 102,900 - the third month in a row car sales increased.

The global economic downturn has resulted in a slump in demand for big-ticket items, such as cars. This has affected carmakers worldwide with many cutting back on production, slashing jobs and seeking funding to see them through the downturn.

In a bid to boost the ailing car industry, many Governments have been announcing schemes with the UK recently announcing a “scrappage scheme”, which pays consumers to get rid of their old cars and replace it with a more environmentally friendly car.

The scheme has proved successful in Germany, who reported a 40% increase in new car sales for March.

The Society of Motor Manufacturers and Traders (SMMT) recently revealed yet another fall in UK car sales in April.

Discuss this in the Finance Markets forums

Story link: China car sales boosted by tax incentives


Add to Bookmarks:

ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL

 

Tags: , , , , tax incentives,

 

Previous: « Bad debt soars at HSBC
Next: Centrica buys stake in BE and plans new nuclear facilities »

Visited 424 times, 2 so far today

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment