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Car markets across China start to see more sales

From CCTV.com| February 22 , 2009 10:57 BJT

Car markets across China have started to see more sales since the central government carried out new policies to encourage more people to buy cars. In Chongqing municipality and Guizhou province in southwestern China, auto sellers are seeing their shops full of customers.

At a car exhibition in Chongqing, sellers have seen healthy numbers of people looking to buy a new car. They say they've had more than 100 customers every day.

A car seller says, "the government has reduced the purchase tax on small cars. So there are more people buying these cars. Our cars at the exhibition center have almost all sold out."

Since the end of last year, many potential buyers chose to delay any decision to buy, since the economic situation wasn't looking too rosy. But at the start of the new year, local governments in Guizhou province implemented preferential policies for car buyers, including a faster loan procedure and lower interest rates. This encouraged more people to spend.

A car buyer says, "it's worthwhile. There is a sales promotion that offers us a zero percent interest rate. I only have to pay 140 thousand yuan for the down payment. And the interest payments won't be too big."

Market analysts expect that, as the market improves, small cars and hybrid cars will become the consumers' choice.

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