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Markets

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Trends/Policies

Light bus market growth slips

By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2006-08-11 13:50

China's light bus industry recorded 96,004 sales in the first half of this year, up 14.47 percent from the same period last year, nearly 100 percent higher than the growth rate of the commercial vehicle market, but China Light Vehicle Market Analysis Association chairman Gao Yunhang predicted the growth would slip in the second half of this year.

"The 96,004 sales was not accurate, because distributors have overstocked, some of the light buses didn't go on sale in retail terminal markets" Gao said. "Distributors won't have the capabilities to get new supplies in the second half of this year," he added.

According to Gao, after the implement of new consumption tax policies on April 1 this year, the tax on light buses which have a 2.0-liter gas engine or 2.5-liter diesel engine was increased from nine to 12 percent, in order to reduce tax pressure on distributors. Light bus companies encouraged distributors to get new supplies at better prices before April 1, so China's light bus sales recorded its highest 20,456 sales in March in the first half of this year.

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The full text is available in the August Issue ofAutoChina.