Shanghai, March 5 (Gasgoo.com) Great Wall Motor CEO Wang Fengying recently proposed that China's government agencies and institutions should buy more low-emission cars as part of the government's effort to boost the market demand for small-engine cars.

"According to the auto industry stimulus plan newly outlined by the government, passenger cars with the engine size below 1.5 liters should have 40% market share and those below 1.0 liters are to have 15 market share, but these goals are not easy to reach," Wang said, as "the sales tax cuts for small cars, effective on Jan. 20, will last only until the end of this year and are not a sustained support for low-emission cars."

As further measures to boost the market demand for small-engine vehicles, she proposed that the government agencies and institutions should buy more low-emission cars than the high-emission ones to set a good example for auto consumers, and that the government should reduce or scrap the sales taxes, road tolls, parking fees, annual inspection fees and other charges levied on small cars.

The CEO of Great Wall Motor said that the government itself should buy more Chinese-brand vehicles and the government's auto-purchase bids should be opened to all carmakers. The stimulus plans also says that Chinese-brand vehicles should have larger market share.

Government officials in China have been using big-engine cars as one of their privileges or as a symbol of status. And most of these official vehicles are imported luxury cars that consume much more money and fuel.

Shanghai, March 16 (Gasgoo.com) After overtaking the United States in January auto sales, China extended its lead as the world's largest auto market in the second straight month this year, xinhuanet.com said today.

In February, China sold a total of 827,600 vehicles, up 24.72% year on year (y/y) and up 12.43% month on month (m/m), according to the China Association of Automobile Manufacturers (CAAM). Vehicle output increased 23.08% y/y to 807,900 units. Passenger car sales in February rose 24.23% from a year earlier to 607,300 units, the CAAM said.

Last month, the auto sales in the United States stood at 689,000 units, down 41.3% from a year earlier, the biggest fall in six months, according to industry tracker Autodata. That means China exceeded the U.S. again to be the world's largest auto market in February.

The January auto sales in China hit 735,000 units, which surpassed the 656,976 vehicles sold in the U.S. the same month. While car sales also slowed in China, but less dramatically, amid the economic downturn, U.S. sales tumbled 37% in January to a 26-year low.

Passenger cars accounted for more than 73% of the total 827,600 vehicles sold in China in February. And passenger cars with engines under 1.6 liters accounted for 70% of the passenger vehicle market, so the bounce of small-engine cars played a critical role in the revival.

Shanghai, March 16 (Gasgoo.com) Guangzhou Automobile Industry Group Co (GAC) has set up an overall framework with Fiat SpA on forming a 50:50 joint venture to produce and distribute Fiat small cars, Beijing Times reported Monday, citing an informed insider.

Major executives have been selected for the JV, according to the source. Jiang Ping, former deputy general manager of Guangzhou Honda Co and active deputy general manager of GAC, would take charge of the planned venture. Yan Jianming, vice marketing director at Guangzhou Honda, would possibly become new marketing director of the new company.

No executives from Fiat has been decided, said the report. Fiat China said they have nothing to announce at present. 

GAC general manager Zeng Qinghong told reporters last week that a Guangzhou-Fiat joint venture is quite possible.

The Linea and Grande Punto that are now sold in China as imported Fiat models, as well as the Palio that was previously made in Nanjing Fiat, are reported to be produced in the planned venture at the early stage.

Fiat had an initial agreement with Chery Automobile Co to set up a joint venture in the world's second-largest car market, but no further progress has been made.