Car manufacturers in China seek government assistance and lower taxes in terms of falling demand for cars in the country, which is the second largest market sector in the world, reported Bloomberg.
The situation is really serious, I hope the government can implement policies to stimulate demand, commented Tsinhun Ting, general manager of Guangzhou Automobile Group Co, a partner of Toyota and Honda.
State aid has already asked U.S. state and European auto companies. Global recession will slow the growth of sales in the sector to 5 percent estimated to increase by 22 percent this year, think of Guangzhou Auto, Honda and Nissan Motor. Slowing sales in China will affect and foreign producers who rely on developing markets in terms of declining demand in Europe, USA and Japan.
Shares of the largest Chinese producer of automobiles SAIC Motor Corp. have thrown down the beginning of the year by 77 percent because of slowing demand and growing competition. Those of Dongfeng Motor Group Co. - The largest listed in Hong Kong producer of cars, have lost 71 percent this year.
Sales tax on cars in the country currently represents 50 percent of the price. The government is considering to reduce sales tax on cars to alternative energy, to encourage demand, claimed earlier this month officials.
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