New vehicle sales in China increased by 6.6% year on year in March to 2.17m units, according to data released by the China Association of Automobile Manufacturers (CAAM). 

The market remained strong despite the introduction of purchasing restrictions by several municipalities earlier in the year aimed at curbing worsening traffic congestion and air pollution.

Cumulative sales for the first quarter exceeded 5.92m units, a 9.2% increase compared with 5.42m vehicles sold in the same period of last year. The association expects strong underlying demand will drive to market up by 8-10% this year to close to 24m units. 

Foreign brands were the big gainers in this market last month with domestic brands reporting a 2.3% drop in sales to 670,000 units – to claim a market share of 30.9%. 

General Motors and its joint ventures reported a 7.8% increase in sales to 313,283 units in March and by 12.6% to 919,114 units in the first quarter.

First quarter sales of Volkswagen brand vehicles increased by 14% to 682,700 units while Audi sales increased by 21% to 124,520 units in the same period.

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Ford’s sales surged by 45% to 271,321 units, with sales in March hitting a record 103,815 units.

Nissan remains the best selling Japanese brand in China with sales rising by over 26% to 115,900 vehicles in March – helped by strong demand for the Sylphy and Teana cars and the launch of the new Xtrail SUV. First-quarter sales hit 283,000 units.

Toyota’s sales increased by 19% to 90,400 units in March and by over 23% to 227,900 units year to date while Honda’s sales fell by 2% to 59,900 in March, after jumping by 31% in the first two months of the year.