The Chinese car industry was saved from a depressing future earlier this year when the government stepped forward and slashed tax on sub 1.6l cars which propelled the Chinese car industry from the World No2 spot to the Worlds Largest Market, surpassing the American market in terms of monthly sales.

There has been chatter about the lowering of tax on 1.8 and 2.0l displacement to boost the 1.6-2.0l market segment, taxes on 1.5l to 2.0l cars sits at a 5%, and tax on 2.0-2.5l is currently at 9%. The Ministry of Information and Communication has denied any plans for a tax change on the 1.5l to 2.0l displacement cars, and has said the current market trend of a 10% sales increase every month has shown that there is currently no need for a tax break on this segment at the moment.