China Mulls Stimulus as Car Sales Drop

The video discusses the surge in car sales in 2015 and the subsequent slowdown in the Chinese auto market. It highlights a proposal by China's National Development Reform Commission to cut sales taxes on cars with smaller engines, which could stimulate the market. The news has already impacted global car makers like VW, Ford, and Daimler positively. The slowdown is partly attributed to the trade war affecting consumer confidence and policy confusion. The proposed tax cuts aim to refocus consumer interest and potentially boost the market, benefiting both Chinese and international automakers.

What is the proposed change in sales tax for cars with engine sizes of 1.6 liters or below in China?

• From 10% to 5%

• From 15% to 10%

• From 5% to 2%

• From 20% to 15%

Which car manufacturers saw a rise in their shares due to the tax proposal news?

• Hyundai, Kia, and Tesla

• VW, Ford, and Daimler

• BMW, Audi, and Mercedes

• Toyota, Honda, and Nissan

By what percentage did passenger car purchases fall in September?

• 15%

• 20%

• 10%

• 13%

How did the trade war affect consumer confidence in China compared to the US?

• It had no impact in China

• It increased confidence in China

• It impacted the US more than China

• It impacted China more than the US

Which Chinese automakers might benefit from the proposed tax cut?

• Ford and VW

• Renault and Nissan

• BYD and Geely

• Toyota and Honda