The sales and production of cars in China crossed 12 million in all these 11 months of 2009, said the Association of Automobile Manufacturers of China. With three more weeks in December remaining, it is expected that the figure may cross 13 million. This is the first time that China crossing the 10 million number in a year(the record created only by the US and Japan earlier) and this feat is attributed to the state’s boosting incentives on economy lines.
This mark is attained amidst the global downfall and China had not become the victim of any such threat. The world needs more cars from the Chinese market, that November 2009 alone yielded a sale of 1.35 million cars. Shanghai Automotive Industry, China’s biggest carmaker, found a sale of 2.44 million cars in 12 months starting November 2008 (means an increase of 50%). The overall sale in the car segment is due to the flexible tax benefits mooted by the government, including the old cars. This made China to overtake the US in number of domestic cars.
The government is assuring its commitment to the economic relaxation, its macro economic policy. There will be measures to boost the trade and benefits to the customers. This comes amidst the fear of clamping down of prices on property and share prices. However, there is no instant threat as the prices stood at steady level with the Shanghai Composite Index rising to 15 points (0.5%) @3,331.9. the meeting of the government on economic policy has relieved the investors from any threat or danger.