China’s Vouchers For Car Buyers Means Best Sales Month

China’s passenger-vehicle sales rose 37 percent last month, the most in three years, as government subsidies spurred demand for minivans and small cars.

Local drivers bought 831,000 cars, minivans and other passenger vehicles in April, the China Association of Automobile Manufacturers said in an e-mailed statement today. Vehicle sales, including buses and trucks, rose 25 percent to 1.15 million.

From Bloomberg

China has withstood a global slump in auto sales after the government cut retail taxes and began handing out 5 billion yuan ($733 million) in subsidies to help boost demand. Volkswagen AG and other automakers are expanding in China, the world’s largest auto market so far this year, to offset tumbling sales in Europe and the U.S.

“The increase was impressive, but it’s sure to slow,” said Qin Xuwen, a senior analyst at Orient Securities Co. in Shanghai. “Subsidies can only sustain demand for so long amid the current economic situation.”

General Motors Corp., the biggest overseas automaker in China, boosted sales in the country 50 percent last month on demand for minivans, which account for 63 percent of its sales.

In the first four months of the year, China’s vehicle sales rose 9.4 percent to 3.83 million. That compares with 3 million in the U.S., where sales tumbled 37 percent amid a recession.

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China’s passenger-vehicle sales rose 37 percent last month, the most in three years, as government subsidies spurred demand for minivans and small cars.

Local drivers bought 831,000 cars, minivans and other passenger vehicles in April, the China Association of Automobile Manufacturers said in an e-mailed statement today. Vehicle sales, including buses and trucks, rose 25 percent to 1.15 million.

China has withstood a global slump in auto sales after the government cut retail taxes and began handing out 5 billion yuan ($733 million) in subsidies to help boost demand. Volkswagen AG and other automakers are expanding in China, the world’s largest auto market so far this year, to offset tumbling sales in Europe and the U.S.

“The increase was impressive, but it’s sure to slow,” said Qin Xuwen, a senior analyst at Orient Securities Co. in Shanghai. “Subsidies can only sustain demand for so long amid the current economic situation.”

General Motors Corp., the biggest overseas automaker in China, boosted sales in the country 50 percent last month on demand for minivans, which account for 63 percent of its sales.

In the first four months of the year, China’s vehicle sales rose 9.4 percent to 3.83 million. That compares with 3 million in the U.S., where sales tumbled 37 percent amid a recession.

Read the rest:
 http://www.bloomberg.com/apps/ne
ws?pid=20601080&sid=aEZmnuI1d9DE

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