China auto sales up 11.4% in May image

The world’s biggest auto market keeps growing, as sales increased with more than 11 percent last month.

Following a 6.4 percent increase in April, sales of passenger vehicles rose even more last month, when 1.76 million units were sold, according to data provided by China Passenger Car Association. From the beginning of the year, vehicle sales climbed 7.7 percent versus the same period in 2015 to 9.12 million units. This fast pace has been kept due to the government’s effort of boost the demand by cutting the purchase tax for engines smaller than 1.6-litre as of October last year, but also due to bigger incentives offered by the automakers and to a large number of new models deployed on the market this year. According to an analysis made by Bloomberg, there are 120 new and redesigned model launches this year compared with about 70 each in 2014 and 2015.

Among global carmakers, GM reported earlier this month a monthly record of 295,282 vehicles sold in China in May, up 16.9 percent compared with a year ago. Toyota’s deliveries in the country climbed 12 percent to 102,900 vehicles, Hyundai surged 25 percent to 100,328, Honda jumped 24 percent to 99,456 units, while Ford dropped from 91,013 vehicles in May 2015 to 88,248 last month.

As for the environmentally friendly cars, the most recent statistics from China Passenger Car Association show sales of new energy vehicles reached 58,125 units in the first three months of the year, only 1 percent up year-over-year.

Via Bloomberg