SHANGHAI, China — China's auto sales were up a whopping 72 percent last month from a year ago, and observers are crediting government support measures that are encouraging buyers. Carmakers in China sold a combined 1.22 million units in October alone, the China Association of Automobile Manufacturers announced.
The nation's vehicle output jumped 80 percent during the same period. For the first 10 months of this year, auto sales surpassed 10.8 million units, an increase of 37 percent year on year.
General Motors was among the most favored, reporting its China vehicle sales more than doubled to 166,911 units last month from a year ago. "This has been a year of records for GM in China," said GM China president and managing director Kevin Wale. Shanghai GM's sales were up 46.5 percent for the year through October, with the Buick Excelle, which was introduced in 2003, passing the one-million-sales mark in China last month. SAIC-GM-Wuling, which makes small commercial vehicles, sold 89,416 units in China in October, an increase of 78.5 percent compared with the same period in 2008. GM has China's top-selling vehicle, the Wuling Sunshine minivan, which passed the half-million mark in domestic sales for the year.
Mazda said its sales were up 32 percent to 14,498 units last month, its second-best month in the country.
Most carmakers have benefited from sizzling sales after the government in February offered subsidies and halved the sales tax on vehicles powered by engines less than 1.6 liters. However, the sales tax will expire by the end of this year, so car makers have been lobbying the government to keep it and other supportive policies to ensure the market will continue to grow next year.
Zhu Hongren, spokesman for the Ministry of Industry and Information Technology, last week said the government is considering extending the tax, which may cover a wider range of cars.
The decision is to be made after soliciting opinions from industry associations and car makers, also needs approval from the State Council, China's Cabinet.
Earlier media reports said some proposals suggested that a lower tax from 20 percent to 50 percent will be charged on vehicles with engine capacity less than 2 liters. The sales tax on cars with engines smaller than one liter will also be abolished.
Inside Line says: The Chinese government is surely watching this sales bonanza closely as it considers whether to renew its tax breaks. — Vivian Jin, Correspondent
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