Domestic auto sales increased by 34% in May, the Wall Street Journal reported. Figures released by the China Association of Automobile Manufacturers (CAAM), a semi-official industry group, showed auto sales – which includes trucks, buses and passenger cars – totaled 1.12 million units for the month. Analysts said the data shows the success of Beijing’s stimulus policies in encouraging Chinese consumers to buy cars, including subsidies and a tax cut on purchases of small vehicles. In 2008, China’s auto sales rose 6.7% to 9.38 million units, but in the first five months of this year alone, sales rose 14% from a year earlier to 4.96 million units, according to data from the CAAM.
For more on the challenges and opportunities in the domestic auto industry, see our June cover story.