China’s car sales were estimated to rise by around 5.7% in 2016 providing the country’s GDP would advance at a low rate of 6.6% and a peak season of trade-in business might come with government enacting preferential policies, following a sluggish auto market in 2015 when car sales grew 3.3% from a year early to 21.79 million units in the first eleven months, in the light of prediction of China Automotive Technology and Research Center.
In view of overcapacity and tumultuous restructuring, the New Normal Chinese economy this year might drag the advancing automotive industry. Sensing the challenges, the government, however, enacted an array of preferential policies including easy monetary policy of reduced interest rates and required deposit reserve rate to promote car purchase and innovation-driven development mode policies to put forward upgrading of auto industry in integrating resources.
Though the number of first-time car buyers may not rise as sharply as that of years ago, a peak season for trading in cars may be around the corner this year where more emphasis would be laid on high quality and characteristics rather than cost effectiveness and low price.
