Thanks for the reality check:

Lawmakers lobbying Chinese govt for small car incentives? at China Car Times

Lawmakers in Beijing appear to be lobbying the government to introduce incentives to further the small car market in China. Last year just over 700,000 small cars (i.e. cars with engines less than 1.3l) were sold in China, which accounted for only 11.6% of total vehicle sales in China. High gasoline prices, and worsening air pollution seems to be the major factor in pushing for incentives to ignite the small car market. The sales of small displacement cars in China did actually fall in 2007, whilst larger sedan sales rose. Furthermore, Chinese consumers only bought 250,000 vehicles in 2007 that had a displacement of less than 1000cc. The lobbying lawmakers are asking the central government to lower, or cancel sales taxes on small displacement vehicles, make road tax cheaper and perhaps even introduce free parking zones for super mini drivers.