No matter where you are in the world, there seems to be a universal truth that when gas prices go up, cars get smaller and more efficient. Even in China. It's sort of like the rule of supply and demand, except that there is still just as much actual fuel available as before, but the Chinese government has raised its price and has therefore changed the amount that its citizens can afford. This action has had the desirable effect of increasing sales of fuel-efficient cars, in spite of a weak overall market. The largest market share gains have been won by joint ventures led by Japanese manufacturers such as Toyota, Nissan and Honda, which led the charge with an increase in sales of nearly 30 percent. Also helping promote the switch from large cars to smaller machines was a variable tax that was reduced for cars with engines of 1.6 liters or smaller.

[Source: Nikkei via TTAC]

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