The first increase in seven months of retail prices of gasoline and diesel have caused consumers to change their attitudes towards purchasing large vehicles. 

Starting June 20^th, gas prices climbed 17-18 percent which is the biggest price rise in years.  Many consumers in China are turning to more fuel efficient and smaller vehicles to cut down on gas.  This is great news for the companies that are currently selling hybrids and smaller vehicles such as Toyota motor, Honda Motor and Volkswagen AG. 

Several analysts predict that China will have the same impact as the developed world where consumers will be more aware of their fuel consumption of their vehicles.  The rise of fuel price has caused shares in most Chinese automakers to tumble as well as making recent pattern of growth in Chinese car sales to be unsustainable over the long run. 

Analyst expects to see a big change in Chinese consumers' behavior to be the same as the developed countries in response to the hike of fuel price. The demand for Sports utility vehicles (SUVs) is expected to decrease dramatically, but the demand for smaller and fuel efficient vehicles will most likely increase.