Friday, February 06, 2009

Auto makers post sharp climb in sales

Auto makers in China reported a substantial sales increase last month following a government decision to halve the car purchase tax, the China Association of Automobile Manufacturers said yesterday .

On January 14, the government announced its plan to lower the purchase tax on cars with engines under 1.6 liters from 10 percent to 5 percent from January 20 to December 31 in a bid to spur the domestic auto industry. The tax cut, taking effect before the Lunar New Year holiday, a major sales season in China, fueled car buyers' enthusiasm for low-emission vehicles with engines under 1.6 liters. Major domestic brands, including Chery, Geely and BYD, which have models under 1.6 liters recorded high sales in January.

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