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| China welcomes small cars back to its streets |
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BEIJING - China will encourage the manufacture and use of small, low-emission cars, overturning current restrictions on them to help curb its growing appetite for oil, the country's top economic planning body said.
Parking fees for small cars should be lower, officials should lead the way in using them and limits on their use as taxis should be lifted, the National Development and Reform Commission said "The safety, power and appearance of energy saving and environmentally friendly low-emission cars have all improved greatly," the commission said, adding that all restrictions should be lifted by March 1.
China would also promote the development of cars that use fuels other than gasoline and diesel and draft tax policies to coax customers towards smaller and more efficient vehicles.
At present 84 Chinese cities restricted the purchase and use of small cars, the China Daily said. Authorities in the southern export hub of Guangzhou had stopped issuing license plates for cars with engines under 1.0 litre in 2001.
The commission said small cars had been discouraged because of "noise and air pollution, poor safety and unattractive appearance".
But as oil prices rise, the appetite for smaller cars had been growing -- those with under 1.6 litre capacity had accounted for 66 percent of sales of domestically made vehicles in the first 11 months of last year -- and car makers were keen to capitalise on the opportunities the new policy offers, the China Daily said.
Domestic small-car specialist Chery Automobile Co. expected to do much better business and planned to launch more low-emission models, the paper quoted sales manager Qing Lihong as saying.
China imports more than 40 percent of its crude oil.
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Source : Reuters
(1/5/2006)
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| Other
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| FSA insurance sales regulations ‘are damaging dealers’ – RMIF |
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