China Car Sales Expected To Top 13 Million

SHANGHAI, China — Driven by soaring consumer demand in November, China's vehicle sales exceeded 12 million units in the first 11 months this year, the China Association of Automobile Manufacturers said. Sales are on pace to top 13 million for the year — a record pace that will enable China to surpass the United States as the world's largest auto market.

At this point last year, vehicle sales stood at 8.63 million units. So far, sales are up more than 30 percent this year, following government stimulus measures such as halving the purchase tax on small-displacement vehicles and subsidies for rural purchases.

With the central government yet to announce whether it plans to continue incentives, car buyers have rushed to book their orders by the end of the year. At a three-day central economic work conference that ended Monday in Beijing, China's leaders pledged to maintain a relatively loose monetary stance and a proactive fiscal policy next year to consolidate economic growth.

According to the Xinhua news agency, citing CAAM's preliminary statistics, sales reached more than 1.35 million units in November, nearly double the figure for a year earlier.

Shanghai Automotive Industry Corp (SAIC), the country's largest auto maker and a partner of General Motors and Volkswagen, sold about 2.44 million units in the first 11 months this year, a jump of 54 percent year on year.

Inside Line says: The torrid sales pace is sure to slow in 2010, unless Beijing elects to continue or increase incentives. — Vivian Jin, Correspondent