China auto sales may reach 13 mln units this year image

China’s overall vehicle sales may reach 13 million units this year, Dong Yang, executive vice president of the China Association of Automobile Manufacturers, said yesterday, Dow Jones reported.

China’s auto sales totaled 9.38 million units last year, according to previous data issued by the CAAM. The semi-official industry association said last month that China’s auto sales could exceed 12 million units this year.

In October, auto sales in China rose 72% year on year to 1.22 million units on the back of strong domestic demand boosted by government stimulus measures. Sales in the first ten months surged to 10.89 million units, up 36.23% from a year ago.

China is set to overtake the United States this year as the world’s largest market. Last month, 838,000 vehicles were sold in the U.S. market, where auto sales in the January-October period came to 8.6 million units, according to Autodata Corp.

If the government maintains tax incentives to boost consumption, China’s vehicle sales can be expected to grow by 10% in 2010, Dong Yang said.

“This year’s growth could be around 30% and 10% is foreseeable next year,” he told reporters on the sidelines of an industry forum.

Source: Gasgoo