Sales of China’s domestically made vehicles set a record high of 1.153 million units in April, up 25% from a year earlier, according to the China Association of Automobile Manufacturers (CAAM). It was the fifth straight month of sales gains, a new record. The latest numbers confirm preliminary estimates released last week.
The gain represents an increase of 3.9% percent from March, when sales rose 5% compared year-on-year to 1.11 million units.
Sales of China’s Chery, which makes cars with small engines, hit a record high of more than 42,000 units in April, partly because of government incentives.
All told, Chinese-based makers produced 1.16 million motor vehicles last month, up 17.9% year-on-year, according to CAAM. It was 5.6% higher than March production. At the current running rate China will become the largest auto producing nation this year.
CAAM said the April figures showed the country’s auto industry is recovering, as the government’s stimulus policies began to take effect. China instituted an incentive package for the auto industry earlier this year, cutting purchase taxes for cars with small engine capacities and providing subsidies in rural areas.
China’s one party system of government is able to move more quickly than republics such as the United States, where a stimulus bill, dubbed cash for clunkers, has been stuck in a congressional committee over Republican opposition to a larger energy independence bill it is attached to. (more…)