China October auto sales jump on tax cut

AFP, SHANGHAI: Auto sales in China surged nearly 12 per cent in October from a year ago, after the government cut a purchase tax on some vehicles to revive the world’s biggest car market, a domestic industry group said yesterday.
Auto sales jumped 11.79 per cent to 2.22 million units last month, the China Association of Automobile Manufacturers (CAAM) said in a statement, as sales growth extended a rebound from September.
China cut purchase taxes by half on passenger cars with small engines, effective from October 1. “The policy’s implementation has strongly boosted sales of passenger cars with engines of 1.6 litres and less,” the industry group said. China’s auto sales had previously fallen for five months through August as the world’s second-biggest economy sputtered. The country’s economic growth hit a 24-year low of 7.3 per cent in 2014 and has slowed further this year, slipping to 7.0 per cent in each of the first two quarters.
In the July-September period, China logged its worst economic performance since the global financial crisis, with gross domestic product rising just 6.9 per cent. For the first ten months on this year, China’s auto sales gained 1.51 per cent year-on-year to 19.28 million vehicles, CAAM said.
In comparison, China’s overall auto sales reached 23.49 million vehicles last year, jumping 6.9 per cent from 2013.

China October auto sales jump on tax cut

AFP, SHANGHAI: Auto sales in China surged nearly 12 per cent in October from a year ago, after the government cut a purchase tax on some vehicles to revive the worlds biggest car market, a domestic industry group said yesterday. Auto sales jumped 11.79 per cent to 2.22 million units last month, the China Association of Automobile Manufacturers (CAAM) said in a statement, as sales growth extended a rebound from September. China cut purchase taxes by half on passenger cars with small engines, effective from October 1. The policys implementation has strongly boosted sales of passenger cars with engines of 1.6 litres and less, the industry group said. Chinas auto sales had previously fallen for five months through August as the worlds second-biggest economy sputtered. The countrys economic growth hit a 24-year low of 7.3 per cent in 2014 and has slowed further this year, slipping to 7.0 per cent in each of the first two quarters. In the July-September period, China logged its worst economic performance since the global financial crisis, with gross domestic product rising just 6.9 per cent. For the first ten months on this year, Chinas auto sales gained 1.51 per cent year-on-year to 19.28 million vehicles, CAAM said. In comparison, Chinas overall auto sales reached 23.49 million vehicles last year, jumping 6.9 per cent from 2013.