We cheer for China leading world's auto sales?

Vehicle sales in China reached 1.10 million in March, a record in the history, according to data from China Association of Automobile Manufacturers (CAAM).

It was the third consecutive month that China's auto sales surpassed the United States, the world's largest auto market.

However, some analysts were wary of forecasting a sustained uptrend from one month's data, noting that March was traditionally a peak season for vehicle sales in the country.

"I not sure the explosive growth can be extended into the rest of the year as some of the incentives, such as subsidies, that got farmers into the showrooms may turn out to be a big disappointment," said Zhang Xin, an analyst with Guotai Junan Securities to Reuters.

To get subsidies of up to 5,000 yuan ($732) for each vehicle they buy, farmers have to go through lengthy application procedures at various government bodies.

"Who knows whether they will get the money in the end. And if they don't, I doubt any of their neighbours would bother to go through the trouble," added Zhang.

Jia Xinguang, a senior auto analyst, said for the year ended March, 2008, vehicle population in China had only reached 66.898 million units, with 8.495 million three-wheel vehicles and 5.046 million low speed lorries.

The number of vehicles per thousand persons was 51.5 units (41.1 units if excluding agricultural vehicles), which was slightly higher than India and Indonesia among all major countries. Needless to say Europe and America, Japan reached 602 units, Korea had 354 units and Thailand owned 146 units. The average number of vehicles per thousand persons in the world is 142 units, much higher than that of China, he said.

Car accidents hit 378,781 in 2008 around China, resulting in deaths of 89,455 persons, two world highest record figures.

By the end of 2005, China's toll highway extended to 180,000 kilometres, 70% of the world's toll highways, according to China's National Audit Office. China's toll stations are the densest in the world.

"Therefore, China created another No.1 in the world," said Jia, "that is the level China's vehicle consumers bear."