China auto sales up due to subsidy change image

Despite the fact that the number of vehicles sold in September in China registered a rise of 5.5 percent versus previous year figures, the overall trend is far away from the high expectations created by the results from previous years.

From the data supplied by China Association of Automobile Manufacturers (CAAM), it may be noticed that the luxury segment registered sustaining high growth rates, but the country wide market is still not very active from the sales point of view.

In September, passenger vehicles sales registered a 8.8 percent increase versus previous year and with 4 percent more than previous month.

As luxury sales increased the most, Volkswagen Group’s Audi sales grew 33percent, reaching a new record of 29,188 cars. BMW registered 21 percent rise in sales for a number of 18,588 units sold and Daimler’s Mercedes-Benz reached 13% last month to 15,815 cars sold.

In the same month, the heavy truck sales were down with 12.4 percent versus same period of 2010. The number of buses sold increased 7 percent from a year earlier, while cumulative bus sales from Jan-Sap period increased 14 percent versus last year.

Starting October 1st, the central authorities introduced the CNY 3,000 subsidy, which includes tax rebates and other buyer incentives, for the cars that consume a maximum of 6.3 liters of fuel per kilometer. This measure was the one that helped China to become world’s biggest vehicle market in 2010, but starting this year it was no more available, until now.