Small cars suddenly selling well in China
No matter where you are in the world, there seems to be a universal truth that when gas prices go up, cars get smaller and more efficient. Even in China. It's sort of like the rule of supply and demand, except that there is still just as much actual fuel available as before, but the Chinese government has raised its price and has therefore changed the amount that its citizens can afford. This action has had the desirable effect of increasing sales of fuel-efficient cars, in spite of a weak overall market. The largest market share gains have been won by joint ventures led by Japanese manufacturers such as Toyota, Nissan and Honda, which led the charge with an increase in sales of nearly 30 percent. Also helping promote the switch from large cars to smaller machines was a variable tax that was reduced for cars with engines of 1.6 liters or smaller.
[Source: Nikkei via TTAC]
Reader Comments (Page 1 of 1)
Rick 4:18PM (1/28/2009)
Oh no, tiny cars are selling in China even though gas prices have increased! The price of oil will be up tomorrow because of the huge amount of demand now!!
Well, that's what they tell us anyway.
Reply
Twinkie_Love 4:42PM (1/28/2009)
Don't they have ladders in China?
HA!!!!
I've found a market I can corner and make millions!!!!
All of you out there, this is my idea! Got it! My million dollar idea!!!
Ha Ha Ha!!! (I'll be able to finally buy a G-Wiz!!!)
Reply