Chinese automotive sales soared by 78% in September 2009 when compared with the same period a year ago. Overall vehicle sales in September sat at a healthy 1.33 million vehicles, with passenger vehicles (SUV, MPV, sedans etc) sales coming in at to 1.02 million units, a year on year rise of 83.6%.
The central government is largely responsible for saving automotive sales which flat lined in February 2009, a large shock to the chest in the form of massive sales tax cuts on sub 1.6L cars turbocharged sales, which resulted in car sales topping one million units for the seventh month running in September 2009.
The sales tax policies are expected to stay until the years end, and maybe extended into 2010 to further the sales goal, it has been rumoured in the Chinese media that the government may relax tax on 1.6l to 2.5l displacement compact sedans to give that segment a boost, much like what was given to the sub 1.6l segment.
Overall yearly sales are expected to hit 12 million by the end of the year and cross the 10 million mark by the middle of October 2009, sales from January to September rose by 34.2% to 9.66 million units.
2008 sales were at 9.4 million vehicles which was 8% higher than 2007, but lacking the 21% growth in the car market that 2007 saw.