China April auto sales rise to new monthly high

Shanghai, May 7 (Gasgoo.com) China's passenger car sales likely rose to a record monthly high of 1.15 million units in April, xinhuanet.com reported today, citing industry figures. Sales in China once again outpaced those in the United States, according to official figures from China Association of Automobile Manufacturers (CAAM).

After slowing late last year as the impact from the global financial crisis deepened, China's auto sales have risen for five straight months. In March, sales hit a monthly record high of 1.11 million units. Sales in April rose 5% from a year earlier to 1.15 million units and set a higher monthly sales record.

China passed Japan to become the world's second biggest market for new vehicles in 2006. With its 1.3 billion population, China has started to overtake the U.S., in auto sales and the sharp downturn in American sales has accelerated that trend. U.S. auto sales fell 34% in April from a year earlier to 820,000 units. That was about 38,000 fewer than in March.

Earlier this year, China unveiled a support package for the auto industry, cutting purchase taxes for small-engine cars and providing subsidies to rural purchasers of minivans and light trucks. The recent auto market boom showed that the stimulus policies had greatly boosted consumer confidence.

According to CAAM, sales of minivans and economy cars surged in April, with SAIC-GM-Wuling and Changan Auto, China's two largest minivan makers, recording sales gains of more than 50% from a year earlier. Sales of Chery Auto, which makes small-engine cars, hit a record high of more than 42,000 units last month.

Meanwhile, Shanghai VW led China's passenger car sales in April with 60,425 units sold, outselling its rival Shanghai GM by 5,180 units. Shanghai GM saw its April sales rise 34.7% year on year to 55,245 units. Changan Ford Mazda sold 25,882 cars in April, up from 19,462 cars a year earlier.