For the purpose of achieving the goal of energy-saving and emission reduction, China’s government has exerted some economic measures on the vehicle consumption.

China’s government decides to largely increase the excise on the luxury vehicle from Sep. 1st on. The excise on the luxury vehicle, whose emission amount is beyond 4 liters, will rise from present 20% to 40%.Yet the excise on the small-emission-amount vehicle will decrease from 3% to 1%. The new policy is applicable for both the homemade and imported vehicle and its aim is to save energy and reduce gas emission.

According to this policy, customers who purchase luxury vehicles after Sep.1 will pay more excise on 50 thousand Yuan to 150 thousand Yuan (USD 714,2 to 214,28).

This policy will undoubtedly benefit those manufacturers and customers of the small vehicle of China. Chongqing Changan Automobile Co. Ltd, one of the manufacturing bases of small vehicle in China, is going to produce a kind of small vehicle with the emission amount of 1 liter for the purpose of contesting for the market. Another manufacturer of small vehicle of China, Chery Automobile Co. Ltd, always applies itself to developing and producing the small vehicle. Its Chery QQ Vehicle is the best sold small vehicle in China.

In recent years, manufacturers of small vehicles in China, represented by Changan and Chery, keep trying to persuade China’s government to introduce the policy good for the development of small vehicle. Yin Jiaxu, board chairman of Chongqing Changan Automobile Co. Ltd, is the delegation of the National People’s Congress of China. Every time when the People’s Congress or Chinese People’s Consultative Conference is on, he always proposes to the People’s Congress about the policy of encouraging the development of the small vehicle.

When releasing this new policy last week, China’s Department of Treasury and State Administration of Taxation expressed that, because of being a large customer of energy sources and a large source of pollution, vehicle industry is the key point of the energy-saving and emission-reduction work. In recent years, the number of vehicle holdings in China greatly increased, which has caused the rapid increase in the demand of petrol and diesel oil. Along with that the pollution to air is more and more serious. Meanwhile, the increasing dependence of the petrol on import from abroad makes the energy security problems very prominent. So there is no time to delay the enhancement in the work of energy-saving and emission reduction in the vehicle industry.

According to the official express, the policy of adjusting the vehicle excise aims at restraining the production and consumption of the large-emission vehicle and encouraging the small-emission vehicle’s production and consumption. This is good for reducing the consumption of petrol and diesel oil, as well as the air pollution. So this policy can help to realize the objective of energy-saving and emission reduction

The vehicle expert interviewed expresses that the new policy will not impact most ordinary vehicle consumers, because most consumers are willing to buy vehicles with emission below 3 liters. According to the statistics from relevant department of China’s government, at present Chinese people own more than 20 million vehicles, and the number is increasing at the speed of 7 million vehicles per year.

Lang Xuehong, a vehicle marketing expert of Sinotrust, denoted that the adjustment of vehicle excise was to reduce pollution and promote technological progress. It also aims at showing the encouragement that China gives to the small-emission vehicle and restraining the large-emission one, especially the SUV, which is a huge consumer of oil.

However, some experts think that coordinated multi-taxation adjustment is needed. What’s more important is that most main vehicle consumers should get the boon. Only in that way can the objective of energy-saving and environmental protection be realized.

Since the new policy largely increases the excise on the vehicles with emission beyond 3 liters, many buyers book the luxury vehicles one after another, in order to own one luxury vehicle before the new policy takes effect. So the luxury vehicle distributors have very hot business. According to the sales force of an exclusive luxury vehicle dealer of Chongqing Auto Southwest Co. Ltd, they have so hot business of luxury vehicles and cross-country vehicles with emission beyond 3 liters after the release of the new policy that some models have been sold out.