Why are more cars being sold in China than ever before?



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    Over the past two decades, China has achieved unprecedented economic growth due partly to their insanely high volume of exports.  This economic growth has brought lots of new money to Chinese citizens.  The Chinese government capitalized on China’s new money by creating tax subsidy and reduction incentives for buying new cars.  The incentives were put on Chinese made cars, which means the Chinese government was, in a sense, financing their own continued economic growth.

    These incentives created huge car sales (literally millions of cars being sold per month) from 2009 until now. Recently, car sales have begun to slow down because of a government mandated cap on the number of cars that can be registered per month.

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