China Auto Sales Up 13% in March Due to Discounts image

Passenger vehicles sales in China increased 13% in March, due to high discounts which increased demand.

Last month wholesale deliveries of vehicles reached 1.59 million units, close to analysts’ estimations of 1.6 million units, according to the China Association of Automobile Manufacturers. Automakers increase incentives to boost sales, offering bigger promotions to get rid of the stockpiles which climbed at the end of February. Geely and BYD are confident that demand will get back on the track with the new government’s leadership.

“China’s overall economy will be improved from last year with the new government’s stimulus policies and help spur vehicle demand,” said Lawrence Ang, executive director at Geely.

During the first quarter total vehicle sales reached 5.42 million vehicles, up 13%. In March automakers sold 449,000 commercial vehicles, up 2.5%, and 320,300 trucks, up 3.2%. GM, which is the largest automaker in China, reported an increased of 9.6% in the region for the first quarter, thanks to increased demand for the Wulig and Buick microvans.

The tensions between Japan and China, which spurred in September, continued to affect Japanese automakers, with Toyota, Nissan and Honda reporting declines during the first quarter in China.