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It appears that China's consumption tax on luxury cars and likely increases in fuel prices have not dampened the enthusiasm of Chinese for owning their own cars.

 

Market research of AC Nielson in Beijing, Shanghai and Guangzhou shows that over 13 percent of consumers in the three cities say they plan to buy an automobile in the next 12 months.

 

In 2004, 6 percent of the surveyed in the three cities said they would buy a car.

 

The survey also shows that the car ownership in China's three largest Chinese cities reached 19 percent, compared with 7 percent in 2004, meaning that one in five families now have a private car.

 

Another Nielson survey found that a Chinese car owner spends an average 1,120 yuan (US$140) monthly maintaining their car and other expenses. That figure reached 1,360 yuan in Shanghai, the country's largest city and most expensive to own a car.

 

(Xinhua News Agency September 27, 2006)