China may top Germany as No.3 auto maker
(Bloomberg)
Updated: 2005-11-13 10:24

Sales to Rise

Sales of passenger cars may rise by about 12 percent to 3 million units in 2006, if the government holds back on a plan to impose a fuel tax, according to the paper at today's conference. Sales of luxury sedans and cars with engines larger than 3 liter capacity may drop if the tax is added, according to the paper.

``Demand will probably lean toward cars with smaller engines, since the government's policy is to impose rules to make it easier and cheaper to own low-emission and small vehicles,'' said Zhu of the State Information Center, affiliated with the National Development and Reform Commission.

Detroit-based GM sold 472,468 China-made and imported vehicles in the first nine months of 2005, almost 28 percent more than last year. DaimlerChrysler said it sold more trucks, Jeep sports-utility vehicles and 22 percent more Mercedes-Benz luxury cars in China in the same period.

``The underlying sales growth in the vehicle industry is still strong after months of pent-up demand,'' said Ma Liqiang, the deputy secretary general of the National Development and Reform Commission. ``Rising gasoline prices merely push buyers to choose smaller cars and won't hurt overall sales.''