Sales of small-displacement cars will continue to decline this year

Shanghai. February 14 (Gasgoo.com) – Sales of small displacement cars (engine displacement 1.3 liter or smaller) in Chin’s passenger vehicle market will dwindle to 12 percent this year, according to a study report released by China’s National Association of Passenger Vehicles.

 

The report says China has not so far taken any serious steps to halt the declining trend of small displacement vehicles. The official definition (criteria) of small displacement made by National Development and Reform Commission does not even mention engine displacement. Under NDRC's criteria, small displacement vehicles must meet three standards: fuel economy (mileage), emission standards and car size.

 

Although Chinese government has included small displacement cars into its government procurement catalogue, in reality, no government agencies are really interested in buying small displacement cars, the report said.

 

More importantly, the government has not so far offered any substantial favorable policies toward the use of displacement cars. For example, the government imposes same property tax on a 1.1 liter displacement QQ (about $5,000) and a luxury Bentley ($1.5 million).

 

Separately, a recent survey conducted by Sinotrust found that more than 80% of Chinese car buyers choose to buy vehicles with engine displacement between 1.3L and 2.0L; only less than 20 percent opt for vehicles with displacement of 1.3L or smaller.

 

Sinotrust, a supplier of marketing solutions and credit solutions in China, surveyed 15,000 car consumers on small displacement vehicles.

 

"The small displacement vehicles are usually poor in driving experience, comfort, and safety compared to larger vehicles. I would rather spend a little more money on a larger vehicle, such as Polo, Fit or Peugeot 206," a car owner said.

 

Most small-displacement cars, including Chery QQ, FAW Xiali and Changan Benben, cannot meet Euro III emission standard yet and will be banned in major cities like Beijing and Shanghai.

 

Last year China's low-small segment vehicles sold 765,977 units, down 7.2 percent year on year, mainly due to the sluggish sales of key models, like Chery QQ(11,019 units, down 34.1 pct) and ChangAn Benben(1,973 units, down 43 pct).