CAR dealers may have to sack 1,000 salesmen and other staff by Christmas because sales plunged 20 per cent over the last year.
Motor Traders' Association of Hong Kong chairman Mike Rushworth said the Government should shelve plans to increase first-time car registration because of the poor showing by car retailers.
He said Hong Kong's economic downturn meant the overall number of cars on the roads was declining.
He said Government plans to ease traffic congestion by imposing a range of short-term fiscal measures were now inappropriate.
Mr Rushworth said sales of vehicles in the territory had been falling since 1992 when 61,000 units were sold. Last year only 53,000 units were sold.
He said the association expected sales for this year to be about 40,000.
He said the Government based its strategy on the flawed assumption that the number of first registrations would remain constant.