Small-displacement automobile purchase tax adjustment, micro-vehicle sales impact, small car fluctuations


On December 31, 2010, the purchase tax for small-displacement cars was restored from the original 7.5% adjustment to 10%. The reporter learned from a number of auto sales shops in Fuzhou on January 4, 2011 that during the three-day holiday in New Year's Day, the small-displacement cars in Fuzhou did not fluctuate, but the micro-customer market was relatively affected.

Came to Fuzhou Longyi Mazda 4S shop, although it is the first day of work after the holiday, the shop still has customers to come to see the car. Xing Lin, sales manager, told the reporter that the adjustment of the purchase tax for small-displacement cars had a small impact on their sales. "We were pretty good here during the New Year's Day, and we sold about 10 units a day, which is almost the same time in previous years."

Lin Pak-jin, sales manager of Haima Motor Fujian Yuyue Sales and Service Store, said, “Although the purchase tax concession was cancelled, we received a total of 13 orders in 3 days on New Year’s Day. It will be slightly worse than December 2010, but it is also poor. Not much."

Before the purchase tax adjustment, there was a small peak in the sales of small-displacement cars. “In the last week of 2010, basically Mazda Motors sold more than 100 vehicles. The sales were very good, and all of our models were basically sold out.” Dealers said they also introduced merchant subsidies 2.5 % Purchasing tax and other preferential methods, ready to meet the arrival of the Spring Festival car peak.

Compared with the small-displacement sedan market, the small-displacement micro-customer market is affected more. Xie Siqiong, manager of a 4S store at Dongfeng Xiaokang, Fuzhou, told reporters: “In December 2010, an average of five or six vehicles were sold every day. In three days of 2011, we sold a total of six or seven units.”

The business of another Hafei auto sales shop is even more bleak. Occasionally, a customer in a car showroom asks about the price and hurries to leave. According to Chen Jie, sales manager of Hafei Auto Fuzhou Ginza Motors Trading Co., Ltd., told reporters, “We sold more than a dozen cars in New Year's Day in 2010. From 2011 to 2011, we had 4 days and we haven’t traded yet. A single business!"

Micro dealers said that the impact of the micro-customer market is relatively large because the subsidy concession of 10% of the car's price to the countryside was terminated on the same day that the cancellation of purchase tax for small-displacement cars was canceled. "Without the two kinds of concessions together, it seems to float relatively large." Xie Siqiong said that micro-customer prices are generally between 20,000 to 50,000 yuan, the price is relatively low. "When both types of discounts were available in 2010, a three-four thousand car could be almost as much as 5000 yuan cheaper than it is now." "A lot of people came in the first sentence and asked if they had subsidy for the countryside. What are the advantages? The minibuses are mainly companies and farmers who buy them for transportation."

In response to the new changes brought about by policy adjustments, micro-commercial dealers have also taken preferential measures to attract customers. "We now extend the 10% rebate offer we launched before. This effort is relatively large and the impact is relatively small," Xie Siqiong said.

“We have introduced a 5,000-yuan work-time fee vouchers, and we have 2,000 yuan more in terms of body prices than we had before. We hope to catch up with the peak sales of automobiles in previous years,” Chen Jie said.

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