Shenyang

Mainland car sales tumble

PUBLISHED : Thursday, 11 November, 2004, 12:00am
UPDATED : Thursday, 11 November, 2004, 12:00am

Mainland carmakers have reported a drastic drop in sales for last month as cautious consumers look to further price cuts.


Analysts say potential buyers are adopting a wait-and-see attitude because of the abolition of import quotas and the lowering of tariffs on vehicles next year.


'There were three major price cuts this year. Logically, people will hold back as they don't want to see their new purchase depreciate,' said Alex Fan, of the Daiwa Institute of Research.


Potential buyers were hesitant as many new models were being launched, he said. Government measures to cool the economy had tightened credit since April, eroding purchasing power, he added.


Hong Kong-listed Brilliance China, for instance, sold only 200 of its Zhonghua models, 50 per cent fewer than in September.