China’s auto production and sales reached 1.26 million units and 1.23 million units, respectively, in October, up 79.8 percent and 72.5 percent over a year earlier, according to the latest statistics from China Association of Auto Manufacturers. This represents the eighth consecutive month that both the country’s auto production and sales surpassed 1 million units.
Although China’s sales volume for October decreased 7.9 percent from the previous month, it is the 10th consecutive month that the country surpassed the U.S., becoming the largest automotive sales market across the globe. Statistics from Autodata Corp shows that the U.S. sold 838,000 vehicles in October.
The surge in China’s auto sales volume was attributed to the consumption stimulus policies launched by the government. In order to encourage car purchases, the Chinese government lowered the purchase tax on new autos and transaction tax on used ones and offered subsidies to consumers who buy fuel efficient, low emission vehicles. Small and medium-sized cities as well as the rural areas of the country’s southeast coastal areas witnessed strong increases in auto sales volume. Many leading automakers, including Volkswagen and Toyota, are planning to build new production lines to meet the increasing demand.
General Motors sold 166,900 cars in China in October, up 100 percent year-over-year, bringing the company’s automotive sales for the first 10 months to more than 1.5 million units. Dalmler said its auto sales in China increased 83 percent to 6,400 units in October, bringing auto sales for the same period in the country to 50,700 units, up 55 percent.
