New vehicle sales in China jumped by 16.6% to a record 2.96m units in November, according to data released by the China Association of Automobile Manufacturers (CAAM).
Buyers continued to pour into the market to take advantage of tax incentives on small engine cars which are due to expire at the end of the year. Consumer confidence also has been lifted in recent months by buoyant economic growth in the country.
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Vehicle sales in the first 11 months of the year increased by close to 14% to 24.9m units, from 21.8m in the same period of last year, and further strong growth is expected in December.
The auto industry is increasingly concerned about the outlook for demand next year, however, once the current tax incentives are withdrawn. Without additional stimulus, it is feared the market could fall sharply from current peak levels.
Local auto brands such as Geely and Great Wall led the market higher last month, driven by strong demand for small, competitively priced passenger vehicles – particularly SUVs. Geely said its November sales more than doubled year on year to 100,701 units.
General Motors and its local joint ventures reported a sales increase of 7% to 371,740 units last month; while Ford's sales rose by 17% to 124,113 units; and Hyundai's by over 15% to 127,008 units.
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