China: New tax policy affects car buyers' choices

Will the new policy affect consumers' decision-making when they choose new cars? Let's ask some consumers in Beijing.

One consumer said "I will choose low emission cars, since the tax will be less."

One consumer said "I will not buy a 2.0 engine model if I change to a new car, because the tax will be higher. I'll choose a low-emission model since the tax policy is more favorable."

One car dealer said "Low emission cars will definitely sell well after the new policy, and car producers will launch more promotions."

Industry insiders say the new policy is evidence of the government's efforts to further restrain the production of high-emission cars. They also note cars with Turbo technology will become more popular, since they have smaller engine size but comparatively higher power. More car producers are set to increase investment towards the R&D in Turbo technology. All this means key changes will take place in the fundamental structure of the auto manufacturing industry.