May：Auto Market Steps into Process

　　In April, China's auto market was faced with a temporary setback. In May, the auto market stepped into the process of adjustment.

　　In May, the production and sales of cars dropped month on month, but increased slightly year on year. The volatility of auto market was related to the tightening of policies aiming at promoting automotive consumption and the release of consumers' needs.

　　May 5

　　Summary:

　　China continued to promote energy conservation.

　　The State Council issued a notice in May, saying that China should intensify the efforts to ensure the realization of targets about reducing emissions in the period of 11th Five-Year Plan, which attracted industry insiders' concerns. The notice pointed out that China should continue to carry out the demonstration projects of new energy vehicles. Relevant departments should introduce specific implementation measures by the end of May.

　　Comments:

　　In the year of 2010, China took great efforts to promote the development of electric and new energy vehicles. Therefore a large number of automobile manufacturers have come up with their corresponding strategies.

　　May 8

　　Summary:

　　Dongfeng Nissan began to establish the second plant in Huadu, Guangdong.

　　On May 8, Dongfeng Nissan held the stone-laying ceremony for the second plant in Huadu. The total investment of the new plant reached five billion yuan. The new plant covers an area of over 1.4 million square meters and its five workshops can handle all the tasks of producing vehicles including stamping, welding, painting, assembly and resin. After the second plant starts producing cars, the production capacity of Dongfeng Nissan in the city of Huadu will reach 600,000 units with the maximum capacity totaling up to 800,000 units. Moreover, the new plant will become the largest one of Nissan across the world. In terms of size, advanced technologies, production and environmental protection, it is a high-level automobile plant.

　　Comments:

　　In recent years, with the rapid growth rate, Nissan has been trapped in capacity. In order to meet market demands, workers had to work overtime. Nissan also moved the production of X-Trail to the plant in the city of Zhengzhou. When the establishment of the new plant is completed, the problem will be resolved. For Dongfeng Nissan, the new plant will lay solid foundation in order to achieve its goal, which is the most important thing.

　　May 18

　　The international oil price plunged, which caused wide concerns in China.

　　The international oil price plunged in May. On May 18, the price was lower than 70 U.S. dollars per barrel. However, domestic oil price remained unchanged. Chinese people felt angry and began to question the domestic oil price as well as the pricing mechanism. According to China's oil pricing mechanism, the domestic price will be adjusted if the rangeability of international oil price is more than 4% for 22 consecutive days. Therefore every time the international oil price dropped, Chinese consumers cannot enjoy the benefits.

　　Comments:

　　Oil price has been a hot topic for several years. The sharply rising oil price has become an unbearable pain for ordinary consumers. Since the state monopoly cannot really stabilize oil price, why not open the market and merge with the international system?

　　May 23

　　Summary:

　　China launched the pilot project for providing subsidies for buying new energy vehicles.

　　According to the policy about providing fiscal subsidies for private purchase of new energy vehicles, five major cities in China would start the trial work. Recently, a source close to Ministry of Industry and Information Technology, Ministry of Finance and National Development and Reform Commission and other policy-making bodies told media that Beijing, Shanghai, Shenzhen, Chongqing and Wuhan would become the first batch of cities which launched the trial project about providing subsidies for consumers.

　　Comments:

　　The reason why those five cities were chosen is that all of them have some industrial bases. (Translator: Qinghua/Hanxin)

　　See Original Chinese Report Please Clicks:

　　http://auto.sohu.com/20101126/n277930923_4.shtml