In July, Chinese car sales increased by 26.3% from the same month last year, seeing the highest monthly growth in 30 months and sales of 1.6 million units. This surge in sales is largely attributed to a government policy that halves purchase tax on cars with engines with a capacity of up to 1.6 litres. The new rules will also help boost China’s auto industry, which has been struggling for years as it tries to compete against cheaper imports such as South Korea’s Hyundai Motor Co. and Germany’s Volkswagen AG.
In July, Chinese car sales increased by 26.3% from the same month last year, seeing the highest monthly growth in 30 months and sales of 1.6 million units. This surge in sales is largely attributed to a government policy that halves purchase tax on cars with engines with a capacity of up to 1.6 litres. These cars alone saw an increase of 38.6% of market share from last year and thus represented 71% of July’s total sales output.