China Car Market Likely to Remain High on Stimulants

Bertel Schmitt
by Bertel Schmitt

While other countries are weaning off their auto markets from the amphetamine injections, China is set to increase the dosage. Already the world’s largest auto market, the Middle Kingdom is hell-bent on turning its working masses into mega motorists.

For 2009, the sales tax on cars that displace 1.6L or less was halved to 5 percent—with a roaring success. The measure is to expire by the end of the year. Most likely, it will be replaced by a bigger injection. According to Gasgoo, three proposals are being floated.

This floating of concepts is common in China (it’s a running-it-up-the-flagpole thing).

The first proposal extends the current tax cut to 5 percent to cars displacing 2.0 liters or less.

The second proposal cancels the sales tax on cars with less than a 1.4L engine completely, and cuts it to 5 percent on cars of 2.0L or less.

The third proposal recommends extending the current tax cut for cars with an engine size of 1.6 liters or less only.

There is no proposal on the table that phases out the stimulants. China will likely run on more speed this coming year. Which will give sleepless nights to those who are worried about the Chinese “using up our oil” or “polluting our environment.”

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href=""> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href=""> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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4 of 8 comments
  • Joeaverage Joeaverage on Nov 02, 2009

    Wonder if it will take the Chinese 100 years to figure out that a society built around the automobile has some serious limitations and drawbacks. I LIKE my cars (all four of them) but I would be just as satisfied to ride my bike except it isn't safe along the route I need to use and there are only two routes. Dangerous and extra dangerous.

  • Wsn Wsn on Nov 02, 2009

    The Chinese stimulant is better implemented than C4C: 1) It doesn't reward previous gas-guzzler owners. 2) It doesn't put perfectly working cars out of service. 3) It has low overhead.

  • YZS YZS on Nov 02, 2009

    Where as we have only been fucking up their environment for the last 150 years. These guys are playing for keeps, and we don't have the balls or the determination to keep up. Give it 50 years, idealogical spawns of Glen Beck will be the new Adolf and we'll have ourselves a WWIII.

  • Joeaverage Joeaverage on Nov 03, 2009

    First teach the competition how to do what we do and then they'll outdo us? Doesn't seem wise... We better get off our duffs and get to work. Time to discard old ideas about how great we are and start getting dirty and working hard. Asia might run over us and keep going.