Car sales boom before year-end

Time is running out for the preferential tax policy on low emission cars. In many cities such as Hangzhou, Guangzhou and Kunming, consumers are trying to beat the year-end deadline, driving up sales.

Car dealers in Hangzhou, eastern China's Zhejiang province, are doing brisk business. So brisk that customers have to wait two to three months for a new car.

Zhou Meishuang, Sale manager of Zhejiang Shenzhe Auto said "We used to worry that we couldn't sell out stock. Now our big concern is a shortage in supply. Many customers have pushed up delivery."

The shortage has even boosted the price of some brands.

Customers in Guangzhou also think it's a good time to buy. For a car with an engine less than 1.6 liters, priced at 100 thousand yuan, sales tax is now 4,000 yuan. Next year, it will be doubled.

One customer said "It's a good bargain at this time."

Some dealers say the tax cut has boosted their sales by twenty percent this year. But at the same time, the boom caught them unprepared. There just aren't enough of many of the best-sellers.

One car dealer said "Many customers ordered cars in September and October. But they still haven't taken delivery."

In Yunnan, dealers say that customers have to book in advance for popular models. They are hoping the low tax rate will be extended next year.