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Automakers' strong China sales continue through January

General Motors (GM) saw its January sales in China rise 97% year-on-year to 219,192 units, the Wall Street Journal reported. The company has more than maintained the 67% sales growth experienced last year, although it is worth noting that January 2009 was the only month in which auto sales dropped, thereby exacerbating the 2010 year-on-year gain. The tax cut on purchases of small vehicles, which helped drive a 46% increase in vehicle sales in 2009, only came into effect at the end of January. The tax breaks have been extended this year, but industry executives still expect sales growth to slow to 10-15%. Toyota, which plans to recall 75,552 RAV4 sport-utility vehicles in China as part of a global recall after some models were found to have faulty gas pedals, said its sales in January rose 53% year-on-year to 72,000 units. Last week Ford Motor announced that China sales for the month jumped 128% to 30,759 units.

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