Congestion Charge May Lead the Trend of Automobile Market

Francis From Gasgoo.com

Recently, the thick weather in Beijing during the golden week has caused an argument whether automobile should be blamed for air pollution. In fact, the local governments of Beijing, Shanghai, Shenzhen, Hangzhou, Nanjing frequently give the signals of congestion charge. For national level, a congestion governing policy is ready to come out, which could control the inventory of automobile in big cities.

For now, the inventory of automobile in China is more than 0.13 billion and increases by 20 million per year. This policy of congestion charge seems to be more powerful than ever before because it uses economic means & price system to change trip methods & consumption habit of automobile. Mr. Li, the director of Beijing Vehicle Emission Manage Department, said there are mainly 2 brand new ways in this process of policy formulating, one is to increase the cost of using vehicle step by step and the other one is to charge fuel pollution discharge fees. All these policies could affect their purchasing passion and change their strategy. But small cars may benefit from this policy for its lower charge.

In urban traffic, small cars are more flexible and easy to park. What's more, the fuel consumption is much lower and even small cars are charged for congestion, it wouldn't increase a lot on the fee. At the same time, the congestion charge would make consumer conservative and finish vehicle consumption in one step. All these changes give small cars manufacturers opportunities and challenges at the same time. More new technologies and models must be brought in and small cars will come into a golden age, getting rid of present weak situation.

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