Tuesday, March 10, 2009

Car Sales in China Increased Significantly upon Government Stimulus

Domestic car sales in China have been increased significantly in February 2009 as the China Association of Automobile Manufacturers (CAAM) recorded 12.4 percent month-on-month increase and 24.7 percent year-on-year increase. In February, 827,600 units were sold in China. Government’s stimulus policy was instrumental behind the surging car sales in Chinese domestic market. China government declared in January that people would need to pay only half the purchase tax for the passenger cars with less than 1.6 liters engines. Passenger vehicles with engines of less than 1.6 liters contributed 70 percent of the total sales of passenger car market. Domestic car production in China has also increased by about 23 percent last month compared to the previous month of this year and the same period of the last month.

It is really very surprising to see such an increase in sales of Chinese car market, while the global auto market is struggling with slowed economy and the recession across the world now seems to be aggravated day by day. I think, this kind of government help is needed for those auto markets which have been badly hit by the economic slowdown across the world.

Related article:

Xinhua net

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