Following two consecutive months of increases, China's automobile market experienced a correction in March of this year, with car sales in major cities across the country dropping steeply.
Meanwhile, the tight supply facing dealers that began since the beginning of 2009 was relieved, while prices for models such as Nissan Tiida, Scoda Octavia, Citroen C-Quatre and FAW Besturn B70 saw substantial decreases.
In response to the downtrend, the country's car dealers, some supported by the automakers, launched a variety of promotional activities including price cuts or lucky draws to attract more buyers.
However, many dealers said their car sales fell as much as 30 percent in the month when compared to January, with several brands witnessing a decline of up to 50 percent. This is mainly because the effect of the car purchase tax reductions, which were announced last year to encourage consumers to buy models with displacements of 1.6 liters or below, has weakened significantly this year, according to industry analysts.
