Government incentives have helped boost new vehicle sales in China in 2015

Government incentives have helped boost new vehicle sales in China in 2015

New vehicle sales in China jumped by close to 20% to 2.5m units in November from 2.09m units a year earlier, helped by a sales tax cut introduced at the end of September, according to the China Association of Automobile Manufacturers.

The tax cut, from 10% to 5%, benefits vehicles with engines of 1.6-litres or less which account for about 70% of the total passenger vehicle market. The move by the central government was part of a range of stimulus measures introduced this year to help lift domestic consumption, as China's economy continued its transition from investment-led growth.

Total vehicle sales in the first 11 months of the year increased by 3.3% to 21.8m units, from 21.1m units in the same period of last year. 

Sales of light passenger vehicles, including passenger cars, SUVs and MPVs, rose by almost 24% to 2.2m units last month, with SUV sales spearheading growth with a 72% jump to 716,000 units. Demand for Chinese-branded SUVs was particularly strong, with sales jumping by over 88% to 395,000 units.  

Overall sales of Chinese-branded vehicles rose by almost 27% last month to close to 1.05m units, claiming an overall market share of almost 42%. Sales of German brands combined rose by 18.2%, while Japanese brands jumped by 15.7% and US brands by 12.4%. 

General Motor's local joint ventures saw their combined sales jump by 14% to 346,671 last month and by 4.1% to just under 3.2m units year-to-date.

Nissan's joint ventures reported a 21.9% sales rise to 122,700 units last month; Ford's sales were up by just 9% at 106,283 units; while Toyota's sales more than doubled to 104,800 units.

BMW reported a 3.2% rise in sales 41,090 units, including Mini, while Daimler's Beijing Benz Mercedes sales jumped by almost 39% to 36,313 units in the same month.