Car sales experience early chill


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September and October are usually good months for car sales. But this season, car dealers are seeing few buyers. Experts have attributed the decline to strong market competition and surging fuel prices, which have made consumers reluctant to spend on vehicles.

September and October are usually good months for car sales.
But this season, car dealers are seeing few buyers.

It's been an unusually chilly season for auto sales in Beijing, especially August, when the capital city sold 50 percent less new cars than in July.

Figures from Beijing's major auto markets indicate the city sold 51-thousand new vehicles in July, the highest monthly number ever seen. But that number soon declined to 28-thousand units in August, down nearly 17-thousand units from a year ago.

One car dealer said "Sales are much worse than the same period last year. We could sell nearly 12 cars per day this season in 2007. But now, we can only sell 2 to 3 cars per day."

Guo Yong, Manager of Business Information of BJ Yayuncun Auto Market said "The cold spells are casting a shadow over "golden September" and "silver October," traditionally peak months for car sales in China. August sales are down nearly 40 percent from July. Because of the odd-even policy, many customers bought their second cars in July. That's one of the reasons for the sales decline in August."

Industry insiders believe that while the odd-even policy may be a reason, the government's macro-control measures and strong market competition have also led to slowing vehicles sales in Beijing.

To boost demand, many car dealers are offering massive discounts and launching promotions to attract buyers.

One car dealer said "Everybody is offering discounts now. Mid-range cars have seen their prices marked down by nearly 30,000 yuan per unit. But some buyers continue to play the waiting game to see if there will be further price reductions."

One car shopper said "The discounts are very generous, so I'd to buy one now."

Many analysts also point out that surging fuel prices and the improved public transport system have also given Beijing car buyers second thoughts.

But some still believe it's still too early predict the year-end results now, as the domestic auto industry could take this opportunity to adjust its tactics and boost sales before the year is up.