Small-car sales dropping in China

The market share of cars with engines 1.6-litre or smaller in China has dropped below last year’s average for the fifth month in a row, according to a report by the Green Car Congress.

The China Association of Auto Manufacturers reported that 1.24 million vehicles were sold in China in July, an increase of 14.4 per cent from July 2009, but a drop of 11.9 per cent compared to June 2010. A “green car” subsidy program was put into place in June, giving customers 3,000 yuan off the price of 71 fuel-efficient vehicles with engines displacing 1.6 litres or smaller, but the association said that it has not had an effect. More incentives are planned to boost the sale of smaller cars.

In July, smaller cars accounted for only 65.38 per cent of overall vehicle sales. In 2009, they averaged 69.5 per cent. The market for cars developed in China, most of which are small, also declined by 4.5 per cent from June 2010 to July 2010. In July, the BYD F3 was the only Chinese-developed sedan on the list of the top-ten best-selling sedans.