Improved Environment for Family Car Consumption UrgedAs a NPC deputy on behalf of China's automobile industry, Zhang Shiduan, general manager of Dongfeng-Citroen, submitted two proposals to the ongoing NPC Session closely linked to the development of the country's automobile industry: China should create a better consumption environment for cars to enter Chinese families.Zhang Shiduan thought that there are three major factors affecting car entry into Chinese families: first, the level of social economic development. Since lots of money spent on a car, more fees will have to be needed for its use and maintenance. Family income forms the basic material basis to decide whether cars can enter Chinese families. Second, consumption concept and the adaptability of auto products. A car should not be only the symbol of the owner's social position or his status. Automobile manufacturers should provide clients with high-quality economical products based on safety, energy-saving, environmental protection and comfort. Third, appropriate consumption policy and environment. Most families in China are affordable for a private car, yet not able to pay for all involved fees needed. This phenomenon should be changed as soon as possible. Zhang pointed out that cars to enter Chinese families are by themselves a dynamic developing process. Last year a total of 650,000 cars were marketed, among which 34 percent were for public use, 37 percent used to a private purpose and 29 percent as taxies. In terms of future prospects of auto market, the proportion of public cars will shrink and taxies will surely be controlled on a certain scale in number. The initial period for cars to enter Chinese families is coming. Considering the elements of all aspects, Zhang predicted that a small upsurge of private car consumption will appear between 2003 and 2005, and, a huge tide for cars to enter Chinese families will occur between 2008 and 2010. Several measures must be adopted in connection with an improved car consumption environment to be created. According to Zhang, unfavorable policy barriers and market partitioning must be demolished, consumption concepts upgraded, old regulations on car use in governments and state-owned enterprises annulled, consumption growth of public cars limited, active policy changes made to promote car consumption, taxes and charges on private car consumption reduced. To conclude, breakup of barriers is lubricant, reform of public cars accelerator, and policy direction forms the paving stone. By PD Online staff member Du Minghua |
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