Car sales are low in Shanghai auto festival week

Shanghai, October 9 (Gasgoo.com) At the auto sales and service festival in Shanghai on Oct. 1-8, discounts and promotions failed to draw buyers, CCTV.com reported. Over 20 types of vehicles at the event had a special offer, but dealers saw no sales boom.

"For a 78,800 yuan ($11,540) car, the dealer is giving away 10,000 yuan worth of cash and tax breaks, plus 2,000 yuan worth of gift package. This means the total promotion for the car is worth nearly 15,000 yuan," one car dealer said.

Industry insiders say not many consumers are interested in those big promotional offers. Some are still taking a wait-and-see attitude. Some dealers are not surprised that sales are not booming. They believe the 8-day holiday has dampened people's enthusiasm for buying a car.

"Most people are not working during the holiday. Even if you bought a car, you still can't apply for car plates, or buy insurance for your car during the holiday. Everything has to wait until the holiday is over," a car dealer said.

"Consumers are just checking out car models during the golden week. They are planning to purchase at the end of the year...as most people expect car prices to drop during the New Year Holiday," another car dealer said.

Meanwhile, many local residents have left the city for the National Day vacation. That's another reason for the low car sales at the city's auto festival during the Golden Week.