Domestic automobile market should see car sales decelerate next year after the government ends its purchasing subsidy.
“Without the subsidy, we see a tough market ahead next year,” Steven Lo (羅明德), senior marketing manager of Yulon Tobe Motor Co (裕隆酷比汽車), said yesterday.
The market will return to normal next year, when carmakers will compete rather than slashing prices because of government incentives, he told the Taipei Times on the sidelines of the 2010 Taipei International Auto Show.
PHOTO: WANG WEN-LIN, TAIPEI TIMES
The government lowered the commodity tax on cars by NT$30,000 this year to boost consumer spending amid economic uncertainty, but the subsidy program is set to end on Thursday.
The subsidy scheme has successfully fueled vehicle sales, with this year’s total sales forecast to hit about 280,000 units, up from last year’s disappointing mark of 230,000 units, automakers said.
There were 326,777 cars sold in 2007, down 11 percent from the previous year, government statistics show.
“There were 28,000 cars sold up to Thursday for this month and the number should be as many as 40,000 for the month as people rush in for the last orders to enjoy the government’s incentives,” said Leman Lee (李振成), vice president of Yulon Nissan Motor Co (裕隆日產).
Total auto sales next year should decline to around 250,000 — better than last year but down from this year — amid a recovering economy but lacking the subsidy, Lee said, adding that other factors contributing to sales include lower unemployment and rising consumer confidence.
With more buyers growing conscious of surging gasoline costs, cars with smaller engines, hybrid models or those powered by electricity will gain momentum, Lee said.
With the official debut of the much-touted M’Car (pronounced “my car”) series at the auto fair, Yulon Tobe expects its price tags of fewer than NT$400,000 to cause a stir among consumers.
Sales of M’Car should be around 300 to 500 units a month next year, Lo said.
Yulon Nissan is also poised to introduce smaller models and power-saving vehicles for its March and Cube series next year.
Held at the Taipei World Trade Center Exhibition Hall 1, the Taipei International Auto Show opens its doors to the public today and runs through Jan. 3.
The fair takes place every two years and is the largest such exhibition in the nation.
Twenty-five automakers are showcasing 30 different vehicle brands at the exposition. Opening hours are from 10am to 6pm and admission costs NT$250.
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