To date, hybrids
haven't been making much headway in the Chinese market. Big price premiums and relatively cheap gas
have dampened demand among consumers there. That may soon change as the Chinese government is apparently considering dropping the sales tax on hybrid vehicles
to stimulate sales. Given the choking pollution in cities like Beijing and Shanghai, the government needs to do something, especially considering that Chinese consumers seem to be increasingly migrating toward SUVs and other more powerful vehicles. What they really need to do is lift the cap on fuel prices. That would seriously push Chinese drivers to consider cleaner, more efficient vehicles.
[Source: China Car Times