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January 05, 2006
China lifts small car restriction
Since late 1990s, Chinese cities have put restrictions on small vehicles with engines sizes less equal or less than 1 liter (1000 CC). Authorities viewed such automobiles slower, less safe, more polluting and less attractive for a city's image. More than 80 cities in 29 provinces currently have restrictions on small cars, according to a survey by Changan Auto.
However rising energy costs have persuaded Chinese authorities to remove the restrictions by March of this year.
Already Chinese automakers are facing stiff competition as new players are entering with attractive compact cars. The three top-selling models in China during the first four months of last year were all economy models, according to the China Automobile Manufacturers Association: the Elantra, from South Korean carmaker Hyundai Motor Co.; Tianjin FAW Xiali Automobile Co.'s TJ7101U — an angular compact_ and Chery Automobile Co.'s perky little QQ mini-car. Japanese automaker Honda, which introduced the Fit compact car last September, saw 20 percent growth in sales in the first four months of the year.
Posted by admin at January 5, 2006 01:45 AM