China’s automobile market grew at its fastest speed in 3 1/2 years in July, driven by a tax break and on relative weak point in the year-earlier duration, however industry participants alerted of down threats ahead.
Foreign and local automobile makers shipped 1.6 million automobiles– sedans, sport-utility-vehicles and minivans– to dealerships last month, 26% higher than the previous year, the China Association of Automobile Manufacturers stated Friday. July was the third successive month where sales grew at a double-digit rate.
July’s gain, which was greatest from January 2013, came as no shock, as it showed weak results in the year-earlier duration when a plunging stock market deteriorated family wealth. After automobile sales fell 3 months in a row, China in October halved the purchase tax on small-engine automobiles to 5%.
The tax decrease has had the desired impact. In the very first seven months of this year, auto makers offered 12.65 million cars, boost of 11% from a year earlier.
