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China's auto sales propel 27%

0 CommentsPrint E-mail Shanghai Daily, December 10, 2010
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China's auto sales powered ahead in November, racing 27 percent to 1.7 million vehicles as car buyers rushed to beat expected increases in license plate fees in some cities.

The rebound after a slowdown during the summer pushed sales for the year to 16.4 million vehicles, up 34 percent from the year before, the China Association of Automobile Manufacturers said in a notice yesterday on its website.

While American auto makers celebrate signs of a long-awaited revival in United States car sales, China's strong growth suggests it will retain its status, acquired last year, as the world's biggest market by sales of new vehicles.

Sales of passenger cars surged an annual 29 percent to 1.34 million, CAAM said.

The expected expiration of subsidies for purchases of small, energy efficient cars next year, and rumors that some cities plan to counter growing traffic problems by raising license plate fees, prompted buyers to head for the showrooms, said Zhang Xin, an auto analyst at Guotai & Jun'an Securities, in Beijing.

"Consumers want to catch the last of the cheap car plates," Zhang said.

The craze for the autos has left the streets of many cities very congested, prompting some to copy Shanghai in raising license plate fees.

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