China's Sept auto sales likely to exceed 1.2M units

China's auto sales in September will definitely exceed 1.2 million units, and will likely total around 1.25 million units, senior government economist Xu Changming told an auto forum Friday.

Full-year auto sales in China could total around 12.6 million units, and could possibly exceed 13 million units, said Xu, director of the Department of Information Resource Development under the State Information Center.

China's auto industry posted its strongest monthly growth so far this year in August, when overall auto sales rose 81.7% from a year earlier to 1.14 million units.

Xu said his department is appealing to policy makers to continue measures that have helped boost sales this year.

"If the policies aren't extended, there will be (market) fluctuations. The degree of the fluctuations is difficult to predict," Xu said.

Earlier this year, China halved the purchase tax on automobiles with engines 1.6 liters or smaller to 5%, and introduced subsidies to encourage sales of some autos in rural areas. Both policies are set to expire at the end of the year.

The tax cut provides consumers with savings of CNY4,000-CNY5,000 per vehicle, but costs the government CNY12 billion a year, according to official data.

"The auto industry has made a big contribution to China's economic recovery this year," Xu said, adding that "the recovery hasn't stabilized."

China's Industry Minister Li Yizhong said in mid-August that policy makers haven't discussed extending the tax cut.