Beijing will ban the
sale of new cars failing to meet the China IV emission standards,
which are equivalent to that of Euro IV, starting from March 1 this
year, triggering price fluctuation of new cars in the capital, the
Beijing Business Today reported.
The price wars, which
will mean greater price reductions in the automobile market,
surprised consumers with experts attributing the discounts to the
implementation of the new emission standards.
According to an insider
of Beijing's Yayuncun (Asian Games Village) auto market, one of the
capital's biggest auto markets, some vehicle models are temporarily
out of stock due to supply factors, but the shortage won't last
long.
In addition, auto
manufacturers had known of the standards for a long time and had
measures in place to meet the standards, resulting in the
postponement of price reduction waves.
Most vehicle
distributors even cancelled price reductions on the grounds of the
China IV emission standards, which means more cost on technical
improvements resulting in an increase for the average price of new
models. But many new models, including the new Corolla, the Focus
and the Octavia, haven't raised their guide prices.
Insiders said the market
will see more price reductions after March 1.
According to information
from Yayuncun auto market, the Mazda 5, a hot-selling sedan, is now
available without spending additional money. The Chery A1, the
indigenous brand Chery's first mini-sized car complying with the
China IV standards, is selling at 1,500 yuan ($209.8)
less.
The latest survey from
the National Development and Reform Commission's price monitoring
center indicates that China's automobile prices will continue to
drop this year as a result of oversupply and fiercer
competition.
The price drop will be
five percent, slightly larger than last year's 4.86 percent as
production rapidly expands in the world's second-largest auto
market, the survey suggests.
The growing production
capacity is partly a result of a series of mergers and acquisitions
that help carmakers to consolidate assets, according to the survey.
Domestic auto manufacturers also sped up their efforts to seek
stock listings, helping the expansion, the survey said.
More than 80 new models
will be unveiled on the domestic market this year, including
updated versions, according to the survey.
(Chinadaily.com.cn
February 20, 2008)
