Recently, some media reported that Chinese government is considering levying environment tax on the motor vehicle. Will environmental tax put more fund pressure on car buyers and further impact Chinese car market?
In terms of this matter, industry experts in Dongguan believed dealers would issue measures such as present to stimulate consumers' demand for cars if China decides to collect environmental tax. In addition, dealers will also promote consumers to purchase more small displacement cars. Consumers feel confused about collection of environmental tax and some consumers even doubt whether the environmental tax could be collected equally and be collected according to the displacement.
The first view: Environmental tax's impact on Chinese car market is limited
“If government starts to collect environmental tax, its impact will be limited”,said Zhang Xiaojun, a marketing manager at Dongze BYD Auto Sales & Service shop. In Zhang Xiaojun's opinion, impacts of environmental tax are decided by the range. If the range is small and conditions are acceptable for consumers, its impacts will slight. Meanwhile, with the increase of car dealers, cost caused by environmental tax can be redeemed by promotional measures so its impacts will further shrink.
“Once environmental tax begins to be collected, it will make an influence on some consumers' plan to purchase cars. However, the impacts will be slight considering amounts of car orders are considerable. Furthermore, sales performance of Chinese car market is booming, so Chinese car market will keep stable in the future”, said Xie Wenqing, vice manager at marketing unit of Hua Duoli Suzuki Motor. Dongguan Zhongsheng Lexus Auto Sales & Service Co general manager Xiao Jie held the opinion that it is necessary for us to focus on the range of environmental tax. Consumers will endure more pressure if the range is very big, and the impacts will be limited if it is just a symbolic measure.
The second view: Will be good news for small displacement vehicles
Chinese government issued a series of favorable polices on the development of small displacement cars. These favorable policies not only lowered consumers' purchasing costs but also provided good development opportunities for small displacement cars. What's more, the favorable measures received recognition from most of the people. Based on the above fact, industry people said collection of environmental tax is supposed to boost sales performance of small displacement cars. At the same time, Zhang Xiaojun pointed out there is no doubt that purpose involving collection of environmental tax is continue to stimulate consumers' demands for small displacement cars, and will impact little on large displacement cars. Reasons for excellent sales performance of large displacement cars mainly rely on their brand and culture value.
“Implementation of environmental tax is a good news for small displacement cars such as Suzuki”, said Xie Wenqing. Xiao Jie believed that environmental tax is likely to speed up the sales of small displacement cars. At present, the world is committed to environmental protection, and therefore it can boost the sales performance of low-emission cars. (Translator: Qinghua Wade)
See original Chinese report Please click:
http://auto.sohu.com/20100209/n270148380.shtml