China car sales pass 12 million

BBC NEWS | 2009/12/07 | 09:05:26 GMT

Chinese annual car sales and production both exceeded 12 million units in the first 11 months of the year, state media has said. The China Association of Automobile Manufacturers expects car sales and output to top 13 million for the full year, the Xinhua News Agency reported. China has never produced more than 10 million cars in one year before. Despite the downturn and falling sales at most global carmakers, demand for cars in China is booming. In November alone, sales reached 1.35 million units, according to the preliminary figures.

The country’s largest carmaker, Shanghai Automotive Industry, sold 2.44 million cars to the end of November, a rise of more than 50% compared with the same period a year earlier, Xinhua said. State incentives, such as tax cuts on small cars, have boosted sales in China. Like many other governments around the world, China has also introduced subsidies to trade in older vehicles. Previously, only the US and Japan had produced 10 million cars in a single year. Domestic Chinese car sales overtook those in the US for the first time in December of last year.

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