By Rong Xiandong (chinadaily.com.cn)
Updated: 2007-07-26 15:40

Second, many small cars' technology is too early in development to satisfy market demands, especially in terms of power performance, safety, and environmental protection.

Some mini cars quit the Beijing market because they failed to meet the China III emission standard, the equivalent of the Euro III standard, and lacked an on-board diagnostics system (OBD), a device used to monitor car emissions, according to Jia.

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If a low-emission car has the same quality as the Chevrolet Spark, I would buy it, said an IT company engineer surnamed Wang, pointing to inferior quality of many mini cars.

Roughly 36 percent of car owners want to change another car this year, according to Su. And about 71.4 percent of people surveyed by Sinotrust tend to choose a higher-grade car when they replace the current one. This means sales of lower-emission cars may continue to shrink this year.

Third, fuel prices have remained stable this year and at the same time prices of many economy cars such as the Jetta have decreased, improving the cars' cost efficiency and thus further eating into mini cars' market share.

Fourth, some manufacturers that used to rely on small cars have begun to upgrade their products to meet changing consumer demand as the small cars bring them little profit. Some automakers say a mini car can earn only several hundred yuan for them.

Geely, a carmaker well-known for making cheap cars, have increased sales of higher-grade cars like the Free Cruiser and introduced pricier new cars including the King Kong and Vision this year.

Chery, the maker of low-emission car brand QQ, saw sales of its higher-grade cars such as the A520 and the Tiggo SUV skyrocketing, while its older models like the QQ and Cowin experienced flat sales.

In spite of the current unpopularity of mini cars, they may see a brighter future as consumers become more rational about buying cars and change their aversion to small cars amid possible oil price hikes and the government's call for smaller and more environmentally friendly cars, experts noted.

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