China's passenger car sales rose 90.18% in August on improved consumer confidence and supportive government policies.
With passenger car sales in China jumped 90.18% in the month of August 2009 against a year ago, the China Association of Automobile Manufacturers (CAAM) has claimed that it will take the auto industry on a path of high sales growth for the complete year, as reported by REUTERS.
Passenger vehicle sales in China pegged at 858,300 Units in August and the overall auto industry posted an increase of 82% to 1.14 Million Units in the same month, said CAAM. As per the data released by the Association, a total of 451,300 Units had been sold in the month of August 2008, while 832,600 Units were registered in July 2009.
Industry gurus have opined that this bolster performance by the auto industry resulted from the Chinese government's stimulus packages and sales inducing measures such as high sales tax for small cars and special rebates for buyers in rural area that snatched customers to showrooms. The government resorted to stimulus measures in the beginning of this year following an intense pressure of the global economic downturn on the auto industry.
Car sales in China dipped to single digit figure in 2008 owing to slow economic growth and devastating earthquake in Sichuan Province that hit automobile demand. However, the industry felt respite in February 2009 when sales graph inched upward on improved consumer sentiments and government's supportive policies.
Since the signs of economy recovery and encouragement to small car purchases provided cushion to the auto industry, China is expected to retain its position of world's largest auto market.
According to "China Automobile Sector Forecast to 2012", a market research report by RNCOS, the automobile industry is benefiting from large consumer base with high disposable income. Rapid development of road infrastructure and changing lifestyle of people have also contributed to make China a globally renowned automobile market.
"The outlook for growth in China's auto industry is still uncertain," said head of the National Development and Reform Commission's Industry Coordination Department, state-run Xinhua news agency reported. He adds that the industry might face the heat after the government's policies have expired and environmental concerns grow.
According to a Research Analyst at RNCOS, "While market conditions haven't stabilized, improved consumer sentiments boosted auto sales in China and this will give fillip to car sales in future. Moreover, China replaced the US as the world's biggest automaker in January 2009."
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