The Trend of Car Consumption at Home

This year there won't be any great changes in the supply and demand of cars at the market. The domestic car output will reach 2 million. The annual need is exceeding 2 million among which 700 thousand are sedans. The abolition of selling the license plate at base price will further inducing nationwide discussions on how to improve the environment for the consumption of cars, Fundamentally speaking, there'll be a bright prospect for the consumption of cars in 2001. Macroscopic policy without the support of microscopic environment is still the key factor to restrict the consumption. The policy of gathering fuel taxes will affect car marketing. Vehicles with high consumption of fuel and those used for farming will be greatly affected. Consumers will favor vehicles with low-exhaustion and low-consumption of fuel. According to European No. 1 standard, cars should have unpassed gas exhaustion in the whole country. Consumers of cars should invest more in the protection of the environment. The major consumption will be private cars, which now takes up 60% of the market while in 1999 only 55%. The increasing growth of private car consumption will bring about new demands of post sale services for the car manufacturing business. The disputes between consumers and manufacturers resulting from car quality and services may probably keep increasing. There will be greater voice for safeguarding the right of car consumers by law. Exclusive sales, single level marketing and the circulation style of sales with post sale services will take a lead in the markets. The car price will drop due to new type cars being put on the market and the increasing output of other kinds of cars. Homemade cars with the price between 10-15 thousand RMB will sell well. The purchase of imported cars will go down due to the import of China's entering WTO. Car purchase on Loan will not attract customers due to the concept of consumption and income problem. Consumers will pay more attention to the safety of cars. Cars with ABS and Gas Bag and other safety installed will sell well.