Driving habits may change in face of fuel rise Go back »

2008-07-28 | Southwest China

Rising fuel prices in China will force low-income car owners to change their driving habits and make fuel-efficient hybrid models more attractive, an auto expert has told participants at a European Chamber event.

Market share for cars in Chengdu with engines smaller than 1.0L dropped almost 20 percentage points in June 2008, a sign that potential low-income buyers were holding on to their money,  said Mr. Roman Leung, general manager for Sichuan Summit Lexus Motors.

Sales of larger-engine cars remained stable, Mr. Leung said.

"Drivers will have to change their driving habits," he said. "People will have to learn how to fully realize the fuel efficiency of their cars."

Mr. Leung said that since the fuel price rise his company had received more inquiries about hybrid cars, which save on fuel costs but cost on average 10 percent more than cars with more traditional engines.

However, he noted that the interest was not as high as expected and the government would have to step in to encourage car buyers to make the change.

"We hope the government will make more incentives to make these cars more popular," Mr. Leung said.

Mr. Leung, speaking at a monthly dinner organised by the Chengdu chapter of the European Chamber, also said he expected fuel prices to continue to creep upwards because the government was keen to lessen fuel subsidies.

However, he said fuel was still cheap in China compared to other countries.

To download Mr. Leung’s Power Point presentation, please click here.