China vehicle sales hit record high in November, following end in sales tax before expiration

Vehicle sales in China hit a record high during the month of November, following an end to sales tax, even before its scheduled expiration. Also, higher consumer demand, following this helped the cause.

China's explosive demand for SUVs helped boost auto sales 17.2 percent in November over a year ago, data released by an industry group showed Monday. Drivers in the world's biggest auto market by number of vehicles sold bought 2.6 million cars, mini-vans and SUVs, according to the China Association of Automobile Manufacturers. Total vehicle sales, including trucks and buses, rose 16.5 percent to 2.9 million.

Sales of SUVs jumped 41.5 percent in November over a year earlier to just over 1 million vehicles. For the first 11 months of the year, passenger vehicle sales rose 15.6 percent over the same period last year to 21.7 million.

Meanwhile, the auto-manufacturers’ association now projects a 13 percent rise in sales this year, more than double the 6.1 percent gain it forecast at the beginning of the year.