Sales of cars, especially smaller and fuel-efficient vehicles, have been better than expected in China during the three-day New Year's holiday.

While most car buyers adopted a wait-and-see attitude before the holiday, the auto market is now booming because of the many discounts that sellers are offering.

Many car buyers are opting for more economical, low-emission vehicles because of high fuel prices.

"We would like to buy a family car, so it's not necessary to choose the high-emission one. The low-emission car suits us better. It is cheaper, and its fuel consumption is lower."

"I place much emphasis on the safety and convenience of driving. And according to the introduction, this car consumes only a little fuel."

In light of the unfolding financial crisis, some experts have forecast a slump in new car sales after the Spring Festival holiday in late January. But some business insiders remain confident about the market.

Che Yinchuan, chief economist at the Shibo Auto Market in Yunnan Province, says automakers should produce new models to boost consumption.

"Carmakers should produce new models that are more environmentally friendly and energy-saving on one hand, and make trendy models on the other to meet the demands of different consumers."
China's top economic planner, the National Development and Reform Commission, has mapped out a plan to boost vehicle consumption, targeting an annual increase in car sales higher than the country's gross domestic product in the next three years.

The plan includes cutting consumption taxes on more economical, low-emission cars and supporting hybrid vehicles.