While the world solves the problems of the global economic crisis, China is glad of the growth of macroeconomic indicators. As the rapid growth in car sales shows that the economy of this country is in a phase of active development.

Even 10-15 years ago there was no speech in China of strong automobile industry, but now China has become one of the largest automotive trader. According to China’s State Information Center, in 2009 the volume of production of new vehicles will exceed 13 million, despite the fact that, according to many experts, this year worldwide will be sold no more than 50 million vehicles.

About how China could in such a short time became a powerful automotive power, said Chi Feng – Geely chief representative in Ukraine.

In his view, the main role in this process played a literate public policy. Since March 1, Chinese authorities have significantly cut taxes on owners of vehicles with an engine displacement to 1.6 liters. There were also revised downward the main taxes related to automobiles – a tax on fuel and transport fee. As a result of significantly reduced cost of ownership of the vehicle.

The next step was monetary compensation when purchasing a new car with an engine displacement to 1.6 liters. In the case of buying on credit the Government has fully compensated for the interest on the loan.

The state is the owner of many of the largest automobile company. But if a private company, which produces cars, can prove to the statesmen of the need for any innovation, the state can finance it. Since the beginning of the year, the program has already been allocated 1.5 million dollars.

For business development for private automobile companies are granted state loans at 3-5% per year.

The import duty on new cars differentiated – 25% -44%. Under such conditions, the import of machinery becomes economically impractical. As a result, virtually all major automakers have already built their own factories in China.

Now in cars production employed about 30 million people, while 90% produced in China, cars are sold on the domestic market.

Monthly sales of new cars in China grow by 35%, despite the fact that prices of cars are not very different from the Ukrainian. For example, the retail price of Geely CK depending on the configuration will cost you 6500-8700 dollars. Earnings of Chinese people are comparable to ours. Inhabitant metropolis monthly earning 1-2 thousand dollars, and income of rural residents fluctuating between 100-300 dollars a month.