China SUV sales in 2007 surged 50 pct on low fuel price

Shanghai. January 11 (Gasgoo.com) –The number of sport utility vehicles sold in China rose about 50 percent in 2007, and this growth momentum is to continue in the next one or two years, according to an analysis from National Association of Passenger Manufacturers unveiled on Wednesday. 

Last year sales of SUVs in Chna were 341,798 units, up 49.1 percent compared with 229,182 units sold in 2006. Encouraged by the strong sales of SUVs throughout the year, large vehicle automakers swarmed to launch new SUV models to gain market shares in 2007.

Lexus yesterday began selling its premium LX570 in China, a SUV powered by 5.7 liter V-8 engine and priced at 1.3 million yuan ($179,000). Prior to this model, Lexus LS600hL, a hybrid luxury sedan and hybrid SUV RX400h was launched last year.

Shanghai General Motors launched its Cadillac SLS in Chinese market in March of 2007, priced between RMB 628,000 ($86,000) to RMB 828,000 ($11,342). The Chinese-made vehicle was also exported to the Middle East last year. Besides SLS, Cadillac SRX was launched in China this Wednesday.

Land Rover launched Freelander 2 (known as LR2 in North America) in April last year. A total of 6,573 Land Rover brand vehicles were sold in China last year, up 143 percent year on year.

"The strong growth of SUV sales is contributed by China's low fuel price compared with international standards,” said Rao Da, secretariat of China Association of Automobile Manufacturers.

He also suggested that Chinese government should implement a fuel tax as soon as possible in order to restrain demand for fuel guzzling vehicles, which could drive up China’s oil consumption and lead to serious environmental problems.