China's Car Consumers Crazy

Despite higher consumption taxes on big-engine cars, rising gas prices and tighter bank lending, first-half passenger car sales have seen 50% growth over the same period a year ago.

Total vehicle sales - cars, trucks and commercial vehicles - could see growth of 74% of about 6.9 million units over 2005.

Car prices are cheaper now than year previously in China. And the Chinese have more money to spend. No mystery here as to why they would want to buy a car, eh?

However, it is no longer the coastal cities that are seeing growth but the second-tier cities such as Chengdu and Chongqing that are scarfing up the vehicles.

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