China’s Love For Big Cars
November 19th, 2011 | 
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Hybrid cars have so far been a tough sell in China. High price is part of the reason, with hybrids in China costing nearly double what they do in the US. However, Chinese consumers have also shown a taste for big cars, and in 2008 sales of SUVs were up 38%. Mercedes Benz announced that it would begin shipping its midsized GLK SUV to China, and GM's Escalade is selling like crazy.
Sales of US minivans and trucks are also up. The Chinese government, concerned about energy efficiency and also reducing emissions, has tried imposing vehicle taxes based on engine size between 1 and 20%, as well as taxes on cars that fail to meet stringent fuel-efficiency standards. However, it is clearly not working, because just like in the US a higher gas tax puts more of a burden on the working class and the poor. The wealthy can afford higher tariffs for gas guzzlers and fuel.
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