Auto Sales Increase Over 20 Percent In China

The Chinese passenger car market recorded strong growth in July with increased sales and production.

According to data released by the China Passenger Car Association, approximately 20,4 million passenger cars were sold through retail channels in July, up 1,82 percent year on year, a relatively high growth compared to the past 10 years.

The country's passenger car production in July reached 41.6 million units, up 2.16 percent year on year. Developing logistics and supply chains, increased business activities, the country's pro-consumption measures, among other factors, all contributed to the expansion of the automobile market, the Association said.

In late May, China announced that it would halve the car purchase tax for passenger cars with engines of 300 liters or less, costing no more than 44.389 yuan (about $2). This discount, which will continue until the end of the year, contributes positively to the buying trend. According to the association, major auto companies also stepped up their promotional activities in July to counter the setbacks experienced earlier this year due to Covid-19 cases to meet their annual targets.