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Small cars focus on 1.3-liter displacement

By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2006-10-24 08:47

China's small cars developed quickly this year due to favorable policies. A good many 1.3-liter small cars are now available on the market including Xiali, Fit, Qianlima, Palio, Palio Weekend and Hafei Saima. Also some automakers are preparing to launch new 1.3-liter models such as the Hafei Lobo, the Chang'an CV6, the Chery QQ6, the Qiyun and the Lifan520.

The 1.3-liter car boom was encouraged by China's changing consumption environment and favorable policies including low consumption tax on small cars (three percent), stimulating consumption.

The increasing oil price also promoted small car development. According to a newsletter published by the China Association of Automobile Manufacturers (CAAM), the small car market kept a rapid development in the first half of this year while the overall auto market recorded slips, mainly due to rising oil prices.

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The full text is available in the October Issue ofAutoChina.