Fuel tax will be introduced soon, dealers lukewarm response

November 26,2008

"To the consumer, weather the fuel tax policy make effects on the consumer behavior or not will depend on the cost increase and the growth rate. Huang Jinsong, General Manager of Xiamen Trade automotive Co. said that. And he also said:" as a large automobile dealer with 2,000,000,000 yuan assets, I think the fuel tax policy is 'neutral'"

On November 20th, the National Development and Reform Commission officially said they have discussed with many departments to make sure the fuel tax will be introduced soon.

Since then, the market discuss will focus on the rate and the specific time. But for the auto industry, is this new policy will help them improve the performance? At least from dealers, almost of them seem give cool response.

"Now the most important way is to increase the consumption of motor vehicles, expand the demand. But the new fuel tax policy can not raise the sales directly. So it will not change the status of distributors." Lisu, general manager of Oriental Motor said that.

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