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Car Sales in China Grow Rapidly

Chinese auto

The American government should probably learn from the Chinese administration how to support native auto manufacturers and increase sales. While it is a hard time for many companies, the automakers in China feel fine because their sales are still growing, setting new records each month.

According to the China Association of Automobile Manufacturers, vehicle sales were 25% higher last month than the same month last year which is about 1.15 million autos per month. Sales in April were the highest this year, although each of the months in 2009 showed sales growth comparing to 2008.

The Chinese government supports the purchases of small vehicles, lowering the tax on them and this also really helps to stimulate sales. It has been noted that cars with 1.6-liter and smaller engines had a 56 percent increase in sales. The general secretary of the China Passenger Car Association said, “The government measures have greatly heightened consumer enthusiasm and made the auto industry the first sector of China's overall economic revival.”

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