At the auto show, sales of passenger cars and commercial vehicles less than 6 tons reached 1.1 million units in August, the second-highest monthly total for the year.
In stark contrast to a year ago, light vehicle sales in China for the month of August were among the strongest for the year.
China registered the lowest monthly vehicle sales for the year in August 2008 as the global recession took hold of consumer wallets.
With the full effects of government stimulus efforts at work, sales of light vehicles - passenger cars and commercial vehicles less than 6-tons - reached 1.1 million units in August, the second-highest monthly total for the year.
China"s August economic figures offered a positive signal. International trade improved as both import and export of goods stopped declining. Investment figures showed an upturn as did consumption figures. Asset, housing and stock prices are all picking up. The consensus is growing that China"s economy has bottomed out.
Strong August vehicle sales, up 78 percent year-on-year, contributed to other positive economic data and leaves China"s automotive market up 32 percent year-to-date in 2009.
Both the passenger vehicle and light commercial vehicle segments enjoyed similar growth rates. Sales of passenger vehicles jumped by 76 percent to 737,000 units for the month, while light commercial vehicles increased by 81 percent to 338,000 units.
Adjusting for seasonal differences, August light vehicle sales suggest an annual market of 14 million units, matching the seasonally adjusted sales rate in July and up significantly from the 8 million unit sales rate witnessed in January of this year.
While the recovery of China"s light vehicle sales from their January lows was initially dependent on government tax incentives and subsidy policy, this is changing.
The light vehicle sales boom today is less dependent on these two drivers. While sales were strongest in the segments that enjoy the tax incentive, mini car, sub-compact car and compact car, all other segments reported sale growth of more than 50 percent in August.
The MPV segment supported by the recovering economy and an increase in auto financing managed to embrace the largest growth in August since July last year, with a 58 percent rise, shifting its year-to-date growth rate from zero to positive.