China '09 auto sales to hit 10 mln in mid-Oct

Shanghai, October 14 (Gasgoo.com) On the back of robust growth in the first three quarters, China's auto sales in 2009 are expected to reach 10 million units in the middle of this month and surpass 12 million for the full year, media reported yesterday, citing an industry body.

In September, China's auto sales soared 78% year on year (y/y) to 1.33 million units, the seventh straight month that sales exceeded one million units, according to the China Association of Automobile Manufacturers (CAAM). Sales of passenger cars, including sedans, SUVs and MPVs, rose 83.6% to 1.02 million units.

For the first nine months of the year, China's vehicle sales increased 34.2% y/y to 9.66 million units. Auto sales in the country are expected to break the 10 million unit mark in the middle of October and surpass 12 million for the full year of 2009, the association said.

China's total car sales exceeded those of the United States for the first time in January to make the Asian giant the world's largest car market, helped by government efforts to stimulate domestic demand.

These measures included slashing taxes on cars with engines smaller than 1.6 liters and subsidizing alternative-energy vehicles.

Last year, a total of 9.4 million vehicles were sold in China, up 8% from the previous year, but market growth, amid financial crisis, was slower than the on-year expansion of 21.8% in 2007.