China’s auto sales rise 2.3% in June
Beijing - Arab Today
China’s auto sales rebounded in June on the strength of sport utility vehicle (SUV) demand but rose just 2.3 percent from a year earlier following a sales tax hike and weak economic growth.
Drivers in the world’s biggest auto market by number of vehicles sold bought 1.8 million sedans, SUVs and minivans, an industry group said Monday. Sales in May shrank 2.6 percent.
Total vehicle sales, including trucks and buses, rose 3.6 percent to 2.2 million, according to the China Association of Automobile Manufacturers (CAAM).
SUV sales rose 15.7 percent to 741,000, helping to offset a 4.3 percent contraction in purchases of sedans to 883,000.
Passenger vehicle sales for the first half of the year rose just 1.6 percent from a year earlier to 11.2 million, down sharply from 2016’s full-year growth of 15 percent.
Last year’s demand was propped up after a 10 percent sales tax on small-engine vehicles was cut by half. Demand weakened after part of that tax was restored in January, raising it from 5 percent to 7.5 percent.
Source: Arab News
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