Currently reading: Chinese to eclipse US car sales
Government incentives fuel car sales in China

Chinese car sales rose to a record monthly total of 1.1 million units in March, and are now tipped to eclipse sales in the US this year.

Chinese sales are forecast to reach 10 million for 2009, while the latest forecast for US sales is 9.7 million units, a year-on-year fall of more than five million units.

Chinese car sales had declined for several months since the end of last year, but recovered strongly in February.

The Chinese government has recently introduced tax measures to favour sub-1.6 litre cars and to impede sales of those with engines greater than 3.0-litres.

The measures are at present scheduled to end in December 2009, but Chinese industry experts believe they will continue indefinitely.

Steve Cropley

Shanghai motor show

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