China Jan-Sept vehicle sales up 34 percent

SHANGHAI, Oct 21, 2002, Reuters reported that robust demand for passenger cars and heavy trucks drove sales of China-made vehicles up nearly 34 percent from January to September compared with the same period a year ago, a state newspaper said on Monday.

The industry regulator, the China Association of Automobile Manufacturers, attributed the strong sales to accelerating domestic demand and a rise in consumer incomes in one of the world's fastest-growing auto markets, the China Daily reported.

Sales of domestically made vehicles from January to September jumped 33.65 percent to 2.38 million units, exceeding total sales for all of 2001, which stood at 2.37 million units, the paper quoted statistics released by the association as saying.

Sales of passenger cars leapt 47 percent during the first nine months to 803,200 units, compared with 720,000 units for the whole of 2001, the paper said.

It added that 195,100 heavy trucks were sold during that period, up 91.7 percent year-on-year.

Car sales in China are expected to hit one million this year, making the country a strategic focus for many global automakers.

Foreign multinationals are scrambling to establish production in China. South Korea's Hyundai Motor Co Ltd became the latest to join the race when it announced plans last week to produce 500,000 cars by 2010.

Other manufacturers already in China fed the first nine months' buying spree by launching new car models, such as Volkswagen AG with its Polo economy car.

The China Daily also quoted the association as saying about 80,900 vehicles were imported in the first eight months of 2002, lower than most analysts had expected.

China currently imposes quotas and tariffs of about 50 percent on imported vehicles. Tariffs are due to come down to about 25 percent by 2006, while quotas should be abolished by 2005.