The retail volume of automobiles in China is expected to reach a 1,91 million, with a year-on-year growth of 12% in October, compared to 1,709 million in September according to China Passenger Car Association（short for CPCA）. If this can finally be achieved, the sales of this month will become second only to January's.

 

The implementation of policy that consumers who buy vehicles with a displacement of 1.6L or below will enjoy 50% reduction of vehicles purchase tax has served well as a main driving force since October.

 

The statistics from CPCA shows that the sales of vehicles with a displacement of 1.6L or below accounted for 81.2% of the total sales, increasing 5.1% from September, with a year-on-year increase of 3%, in the first twenty days of October.

 

Because the implementation period of this policy will last for fifteen months, lots of automotive enterprises have begun to prepare for producing popular models and key models with a displacement of 1.6L or below.

 

Dongfeng Motor Corporation (short for DMC) will produce more AX7 with a displacement of 1.4T.

 

Similarly, KIA will invest more to develop their eight on-sale models with a displacement of or below. What’s more KIA will also launch SUVs with a displacement of 1.6L or below on which the policy has more influence.

 

Beijing Hyundai will also increase the production of some important models a displacement of 1.6T, including the ninth-generation Sonata, new Tucson SUV. The sales of these two models will take up the largest proportion which would have been 70%. Mistra, another model of Beijing Hyundai will also launch vehicles with a displacement of 1.6T.