China’s auto sales increased 63.6% year over year in July to 1.09 million vehicles amid global slump. According to the China Association of Automobile Manufacturers, auto sales in the country went up 23.4% to 7.2 million vehicles in the first seven months of 2009.
Government incentives such as sales tax and interest rate cuts as well as subsidies to trade in older cars are the principal factors behind the sales growth. Faster economic recovery has also helped the world’s biggest auto market to uphold its position. China overtook the U.S. as the world’s leading auto market in January this year.
Sales of passenger vehicles in the nation increased 70.5% to 832,600 units, while sales of commercial vehicles rose 44.2% to 253,000 units.
In contrast, July auto sales in the U.S. tumbled 12% to 11.2 million vehicles. However, the U.S. automakers in China performed excellently.
Sales at General Motors in the nation shot up 77.7% to 144,593 vehicles, a monthly record for the company’s second-largest market. Ford Motor (F) set a monthly record as well by posting a 54% rise in sales to 19,486 vehicles through its car venture – Changan Ford Mazda – a tie-up with Chongqing Changan Auto and Mazda Motor.
China’s luxury-vehicle market also performed well during July. Germany’s luxury-car maker Audi AG showed a 42.5% rise in vehicle sales to 13,399 units in China and Hong Kong.
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