Sales of Fuel-Efficient, Low CO₂ Cars in China Dropping

23 July 2007

People’s Daily. Sales of the most fuel-efficient models of cars in China declined 11.67% in the first half of the year. The dip in sales of those models was in stark contrast to general automobile sales figures in China which increased nearly 30% on the previous year, according to the China Association of Automobile Manufacturers.

Sales of fuel-efficient, low CO₂-emitting cars dropped 25% in Beijing alone, according to Su Hui, head of Yayuncun automobile market.

“When consumers purchase automobiles, their tend to consider how the automobiles reflect their ‘face’, their social status. Larger vehicles, more expensive models and famous brands are usually preferred,” Su explained.

No low-emission car brand was listed among the top 20 best sellers in the Yayuncun automobile market in Beijing unlike last year when Xiali and QQ were on the list.

A survey, done by Sinotrust Marketing Research & Consulting company targeting 15,000 potential consumers, shows no more than 20 percent would consider low-emission cars as their first choice for quality reasons as well as social status.

Many fuel efficient cars, including Chery QQ and Changan Auto, have yet to reach the Euro 3 emission standard. Some of them were withdrawn from the Beijing market because they lacked OBD (On-Board Diagnostics).

Lang Xuehong, leader of the automotive department of Sinotrust, said many manufacturers were reluctant to invest in low-emission car research and development as they could only make a few hundred yuan (less than 100 U.S. dollars) in profits.