Vehicle sales driven by demand for smaller cars
CAR sales surged 23 percent year-onyear in July in China, the world’s biggest auto market, on sales of smaller passenger cars.
A total of 1.85 million vehicles were sold in the country last month, the China Association of Automobile Manufacturers (CAAM) said.
Growth in auto sales has accelerated for three consecutive months as the country’s economy shows signs of stabilising.
The July growth rate was higher than the 14.6pc gain recorded in June, though total sales were lower than the 2.07 million for the month.
Sales of passenger cars with engines smaller than 1.6 litres jumped 38.6pc year-on-year to 1.14 million in July, CAAM data showed. The government slashed the purchase tax on passenger cars with small engines last October.
China’s car sales increased at their slowest rate in three years in 2015, rising less than 5pc annually to 24.6 million units as the economy lost momentum.
China’s economy expanded 6.7pc in the second quarter of this year, the same as the previous three months but down from 6.9pc for all of 2015.
Car sales in China grew by over 23 percent in July compared to the same period last year.