Chinese Steering Clear of Energy-Saving Vehicles
An industry analyst says the government subsidy available for energy-efficient vehicles is too small to appeal to consumers, particularly younger ones with growing purchasing power.
The Chinese government’s RMB6 billion ($960 million) promotional budget has done little to encourage consumers to buy energy-saving vehicles, the official news agency reports.
The latest government funding to promote the sales of cars with engine displacement of 1.6L or less is on top of the RMB12 billion ($1.9 billion) available to subsidize energy-saving autos such as hybrids and electric vehicles since 2010.
But the Xinhua news agency says consumers have shown little interest in these cars, despite subsidies of RMB3,000 ($480) per unit. It says the policy has not led to any noticeable surge in sales of the small and mini-vehicles that account for a large number of China’s energy-efficient cars.
Xinhua says large numbers of middle-class car buyers are rejecting the mainly Chinese-branded subsidized energy-efficient autos and instead basing their purchasing decisions on the vehicle’s look and top speed.
Hao Qingfeng, a Beijing-based consumer-affairs specialist, says dealers’ indifference also is slowing sales of energy-saving automobiles. A one-time subsidy is not enough, he adds. The government should enact preferential policies on vehicle tax rates, parking fees and insurance for buyers of such vehicles.
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