“If the purchasing tax halving policy for vehicles with engines no larger than 1.6L continues, the market sales will reach 29.68m units with a growth of 6% in 2017 compared with 2016, or else the number with be 28.56m units and increases 2%.” Xu Haidong, Assistant Secretary General of CAAM said.

CAAM made predictions for all sub-markets that, if the policy continues in 2017, passenger vehicles, cars, SUV, MPV and vans will reach sales of 26.1m units, 11.49m units, 11.42m units, 2.65m units and 538,000 units, growing 6.5%, -7.4%, 25.6%, 15.2% and -23.1% respectively in 2017. But the withdrawal of policy will make sales of passenger vehicles, cars, SUV, MPV and vans reach 24.98m units, 11.07m units, 10.93m units, 2.5m units and 488,000 units, growing 2.0%, -10.8%, 20.2%, 8.7% and -30.2% respectively.

Hao Hong, Manager from SAIC Group believes that, the popularization of online car-hailing services will stimulate the growth of auto market in a short time. But in the long run, the decreasing platform subsidiaries and the coming out of local car-hailing services regulation may become disadvantages for the market growth. Besides, the supply-side structural reform will take efforts in new vehicles, second-hand vehicles, parallel imported vehicles and abandoned vehicles. The comprehensive result of such macroeconomic factors will add pressure to 2017 auto market.