Auto sales continue to grow in China

China’s passenger car sales to dealerships rose again in August as the world’s largest auto market continued to experience high demand. Figures published by the China Association of Automobile Manufacturers suggested that wholesale deliveries rose by 18.7% on a year-on-year basis to 1.02 million units. The increase can largely be attributed to greater discounts at showrooms as dealers attempted to clear inventories and attract consumers after sales growth began to slow in April. Furthermore, the government announced halfway through the month that it was expanding the number of vehicles eligible for its fuel-efficient model buyer subsidies. Overall vehicle sales increased by 16.1% to 1.3 million, backing up the body’s recent decision to boost its full-year forecast from 15 million to 16 million. (September 21, 2010)