China auto sales boosted by 11% last month

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Even if the analysts predict a slower pace for China’s auto market in the near future, the sales are increasing at the moment. After the government cut a tax sale for cars, deliveries in China have recorded the fastest pace in seven months in October, according to the China Passenger Car Association. Thereby, sales increased by 11.3 percent to 1.85 million cars last month, the best statistics since March. Retail deliveries throughout October gained 6.4 percent, reaching 16.2 million vehicles sold. The tax reduction applies for cars with engines up 1.6 litre, being halved to 5 percent. The most wanted models were the SUVs, with deliveries in October climbing by 69 percent, while sales for MPVs rose by 6.6 percent. However, sedans were not very popular with a 5.1 percent loss in sales. “Automakers have been giving discounts to boost sales and the tax cut is another bonus. The demand recovery for autos is likely to persist in the fourth quarter, into the first quarter of next year”, said Claire Su, analyst at Yuanta Securities Co. Ltd. Taipei. All the major automakers have admitted that the tax reduction had a good impact on sales. Hyundai’s sales rose by 5 percent in October, first positive month since March, GM also recovered after three months of sales decreases, while Nissan, the biggest Japanese auto manufacturer by sales in China, predicted it will deliver one million cars until the end of the year. “The recently announced government incentive for vehicle purchases helped boost buying sentiment starting in October”, also agreed Matt Tsien, president of GM China. Via Bloomberg