Vehicle sales in China soared by 32% to 18.06m units in 2010 according to data released by the China Association of Automobile Manufacturers (CAAM).
Passenger car sales in 2010 were put at 13.8m units, 33% ahead of 2009’s total.
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However, analysts are forecasting that 2010’s frenetic pace of growth in the world’s largest vehicle market will slow in 2011.
Tax breaks that have helped drive the market up over the last two years are being removed and there are efforts by the Chinese government to cool an overheating economy by raising interest rates.
In December, total vehicle sales in China gained 17.9% to 1.67m units, the association said. Passenger-car sales rose 18.6% to 1.3m units.
Growth of the vehicle market will be around 10 to 15% this year, CAAM said today.
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By GlobalDataSome Chinese cites may follow Beijing’s example and impose restrictions on car ownership to curb chronic traffic congestion, analysts have speculated. Others say that the car market will maintain much of its growth momentum on the back of a still strong economy and the spread of car ownership to inland cities as well as higher replacement demand from the bigger markets of the last 3-4 years.
