According to a report coming from the Global Times of China, the country's green car subsidy program has yet to to boost sales of smaller, more fuel-efficient vehicles. In fact, drawing from figures reported by the China Association of Auto Manufacturers (CAAM), the Global Times points out that the ratio of vehicles sold with engines 1.6 liters in size or less, dropped below last year's average for a fifth consecutive month. As the Global Times reports:
Dong Yang, executive vice chairman of CAAM, suggested that the country's recently introduced green car subsidy program, which awards automakers 3,000 yuan ($443 U.S. at the current exchange rate) per qualifying vehicle, has had little if any impact on sales of efficient vehicles. Yang hints that China is already considering additional incentives to help spark buyer interest in smaller vehicles. As we've said before, a measly $443 incentive ain't enough to turn an industry around, but at least China is well aware of that now.In July, smaller cars accounted for only 65.38 percent of overall passenger vehicle sales, which totaled 946,200 units, declining 1.42 percentage points month-on-month and dropping below last year's average of 69.5 percent for five months in a row. Likewise, the market of China-developed cars, most of which fit into the small car category, also declined.