China's January auto sales up 14 percent
China's auto market maintained solid growth in January despite the loss of some government tax breaks on small cars.
A total of 1.9 million passenger cars and commercial vehicles were sold in China in January, up 14 percent from a year earlier, according to a statement from the China Association of Automobile Manufacturers (CAAM).
In January, sales of passenger vehicles surged 16 percent year-on-year to 1.5 million units, while sales of commercial vehicles rose nearly 5 percent to 365,400 units.
Industry analysts had feared that January sales would suffer after the central government abolished a tax incentive for small vehicles at the end of 2010.
Moreover, Beijing's municipal government slapped tight restrictions on car sales to ease the city's gridlock.
In response, China's automakers cut January vehicle production by 3.6 percent from December, according to CAAM.
Despite the production cuts, analysts expect continued sales growth this year. In a report released this month, J.D. Power predicted China's auto sales would increase by 11 percent to 19 million units in 2011.
"In spite of the expected cooling of the growth rate, China will remain the top global auto market by a significant margin," said J.D. Power in its release. "Long-term prospects for the market remain strong."