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Fast growth in H1 car imports

(Xinhua)
Updated: 2008-08-07 11:38

BEIJING -- China's auto imports grew at a faster pace in the first half of this year, fueled by a stronger yuan and a possible higher tax which helped buyers to purchase earlier.

Vehicle imports rose 53.15 percent to 212,800 units between January and June from a year earlier, according to the China Association of Automobile Manufacturers Wednesday.

The growth rate is 18.22 percentage points higher than the same period last year and also represents three times the rate of overall passenger car sales growth.

"The robust imports came on the heels of an appreciation in the yuan that reduces the prices of imported cars," said Xu Changming, director of the State Information Center.

The fast expanding dealer network also provided easier access for overseas car makers to cement their presence in the world's second biggest auto market, he said.

As most of the imported vehicles were powered by big engines, other analysts also believed that many auto buyers were eager to place their orders before the possible implementation of a higher consumption tax, which in turn led to a jump in imports.

China has been considering capping a higher consumption tax on gas guzzlers to address environmental and energy issues. There has been speculation that the tax will be introduced this year. Despite record oil prices, demand for sport utility vehicles has been heavy.

Imports of SUVs in the first half jumped 79.09 percent to 108,500, accounting for nearly half of the total imports. The growth rate also represents a rise of 41.46 percentage points from a year earlier.

"Chinese-made SUVs failed to be competitive in the high-end segment, leaving much room for growth to those made by overseas car makers," Xu added.

The value of total imports rose 39.6 percent to $16.3 billion dollars from a year earlier, according to CAAM in a separate report.

(Source: Shanghai Daily)