Vehicle manufacturers Wanfeng will withdraw from the industry

Recently, the Shanghai Wanfeng Passenger car company, a subsidiary of Zhejiang Wanfeng Wanfengaote bus manufacturing companies, suffered losses due to poor sales. Recently it stopped all production.

It is learned that Shanghai Wanfeng stop production because of ever rising oil prices and the adjustment of consumption tax that suppressed the low-end SUV. Sources revealed that Shanghai Wanfeng SUV platform only had 10,000 units production capacity, and it sold more than 6,000 units in 2004, more than 4,000 units in 2005. In the first five months of this year, it sales was only 824 units, a year-on-year decrease of 52.6%.
 
In fact, now not only Wanfeng, but also the whole low-end SUV industry is facing the pressure. New consumption tax increasing, coupled with rising prices of raw materials such as oil and steel, and low-end SUV price competition, these factors blunted enterprises price advantage.