China Auto News of the Week (Aug. 11 - Aug. 15, 2008)

Imported Fiat models to sell in China in late Aug

Shanghai, August 11 (Gasgoo.com) Two imported Fiat models are expected to go on sale in China later this month, said a Fiat China insider last week, as cited by xinhuanet.com yesterday. If everything goes according to plan, this will bring the Italian automaker back to the Chinese auto market ten months after the ending of its partnership with Nanjing Auto.

The first batch of about 300 imported Fiat cars are going through customs formalities at Tianjian port and will go on sale first in Shenzhen on August 22, said the Chinese importer of Fiat vehicles. The first two imported Fiat models for sale in China are Linea and Bravo, and Grand Punch will go on sale in September. The three Fiat models will be priced at 148,800 yuan ($21,800) to 219,000 yuan in the China market.

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China car sales see 4-month consecutive decline
 
Shanghai, August 12 (Gasgoo.com) China's passenger-car sales dropped by 12 percent in July month on month, a decline that has lasted for four straight months, Xinhua reported, citing data from China Passenger Car Association (CPCA).

Domestic passenger vehicle sales rose a slightly 3.2 percent to 462,000 units in July, but down 11.5 percent from last month's 522,000 units.

Five new mini-cars to go on sale this year

Shanghai, August 12 (Gasgoo.com) Since the mini-car models of Chery's QQ series achieved sales success in the home market, more Chinese carmakers have shifted their attention to this vehicle segment. In the next few months of this year, Chery Auto, Geely Auto and BYD Auto and other independent Chinese carmakers will launch their all-new mini-car models to snatch more market share from this auto segment.

Ford China official denies rumors to sell Volvo

Shanghai, August 13 (Gasgoo.com) A senior Ford China official said Ford will not try to revive sales at the expanse of Volvo Car Corp, a Chinese newspaper reports.

"Ford has no plan to sell Volvo, nor other Ford subsidiary brands whatever,” Xu Guozhen, vice president for Ford (China) Co told a Sichuan based newspaper at an industry event recently.

China Jan-Jul auto imports up 48% to 247,000 units

Shanghai, August 13 (Gasgoo.com) In the first seven months of this year, China's auto imports rose 48%% from one year earlier to 246,985 vehicles, according to General Administration of Customs. The total value of auto imports in that period reached nearly $9.174 billion, up 66.3% year on year (y/y).

On Monday, China's General Administration of Customs announced that China imported 35,018 vehicles in July, which are valued at $1.41 billion. From January to July, China imported a total of 246,985 vehicles, up 48% y/y, and the imports were valued at $9.174 billion.

China announces plan to raise tax on big cars

Shanghai, August 14 (Gasgoo.com) The Chinese government has officially announced its plan to raise its car consumption tax on luxury vehicles of high emissions and cut tax on small cars as of next month, Xinhua reported on Wednesday.

From September 1, the tax on passenger vehicles with engine sizes greater than 4 liters will be doubled to 40 percent from 20 percent, the Finance Ministry and State Administration of Taxation said in a statement.

Those buying vehicles with engines sized from 3 liters up to 4 liters will have to pay a 25 percent tax, up from the current 15 percent, it said.

China-made vehicles post m/m price rise in July

Shanghai, August 14 (Gasgoo.com) China-made vehicles posted a month-on-month (m/m) price rise in July due to higher raw material costs and implementation of National III standards, while the imported vehicles saw a price drop from the previous rising price, reported xinhua.net yesterday, citing the survey data from the regulatory body.

The result from the 36 surveyed cities showed that China-made vehicles saw the July price continue to increase by 1.50% compared to 0.15% in the previous month. The passenger vehicles and commercial vehicles both had a price rising.

Changfeng Motor: No talks on stake sales

(AP) China's Hunan Changfeng Motor Co., a major maker of sports utility vehicles, is not in talks on selling a stake to major automakers Guangzhou Automobile or Beijing Automotive, a company official said Friday, denying reports of negotiations on such a deal.

"So far, we have not had talks with either Beijing Auto or Guangzhou Auto," said Wang Tianjun, an official in Changfeng's investor relations department.

Dealers store up imported cars ahead of tax rise

Shanghai, August 15 (Gasgoo.com) Dealers of imported cars with high emissions in China are storing vehicles ahead of the tax rise effective on September 1, and prices of existing cars are already being sold at a higher price than usual, local Chinese media reported today.

A BMW dealer in Hangzhou, capital city of eastern Zhejiang province, said the tax rise was prompting potential buyers to push back their planned purchases. As a result, the dealerships were storing some vehicles and stopping its promotional activities designed to attract clients.