China's vehicle sales jump 29% in Sept. on soon-to-expire incentives
China's light-vehicle sales surged 29 percent year on year to 2.27 million units in September as car buyers took advantage of soon-to-expire tax incentives for vehicles with small engines.
Except for microvans, small models in each product category sold especially well, according to the China Association of Automobile Manufacturers.
Last month, deliveries of crossovers and SUVs shot up 52 percent from a year earlier to 879,000 vehicles. Sales of multipurpose vehicles surged 37 percent to 221,500, and sedan deliveries rose 17 percent to 1.12 million.
But China's newly affluent car buyers continued to abandon low-priced microvans, which once were big sellers in rural areas. Last month, microvan sales plunged 33 percent to 48,600.
In the first nine months, light-vehicle sales totaled 16.75 million, up 15 percent from last year.
In 2015, the government halved its purchase tax on vehicles with engine displacements of 1.6 liters or smaller to 5 percent. The tax cut expires at the end of this year.
Fearing the expiration of the small-car incentive would severely dampen market demand, the association is lobbying the Chinese government to extend the tax cut. The government has yet to respond.
Last month, deliveries of crossovers and SUVs shot up 52 percent from a year earlier to 879,000 vehicles. Sales of multipurpose vehicles surged 37 percent to 221,500, and sedan deliveries rose 17 percent to 1.12 million.
But China's newly affluent car buyers continued to abandon low-priced microvans, which once were big sellers in rural areas. Last month, microvan sales plunged 33 percent to 48,600.
In the first nine months, light-vehicle sales totaled 16.75 million, up 15 percent from last year.
In 2015, the government halved its purchase tax on vehicles with engine displacements of 1.6 liters or smaller to 5 percent. The tax cut expires at the end of this year.
Fearing the expiration of the small-car incentive would severely dampen market demand, the association is lobbying the Chinese government to extend the tax cut. The government has yet to respond.
