Car sales in China in August jumped 55.7 percent compared to the previous year, thanks to a new government program subsidizing the purchase of “fuel-efficient” vehicles, Chinese state media reported on Thursday.
Last month, 1.22 million cars were sold in the world’s largest automotive market, reported the official Shanghai Securities News, citing data from the China Automotive Technology and Research Centre. Compared to the previous month, 15.1 percent more cars were sold, and this trend is expected to continue in September. In June, the Chinese government launched a pilot program in five cities to subsidize the purchase of vehicles that consume less energy as part of efforts to reduce harmful emissions, save energy, and promote the development of ‘green’ technologies. Under this project, the government offers subsidies of up to 60,000 yuan (8,850 dollars) for the purchase of hybrid and electric cars, and 3,000 yuan for fuel-efficient models. In 2009, China took the title of the world’s largest market from the U.S. with 13.64 million cars sold. After last year’s record growth, sales have slowed in recent months, partly due to seasonal factors. Despite this, it is expected that more than 15 million vehicles will be sold in 2010, corresponding to an annual growth rate of about 20 percent. (H)
