China’s automobile industry maintained rapid growth in September amid the support of policies on stabilizing the economy and boosting consumption, industry data showed Tuesday.

The country’s automobile sales rose 25.7 percent year on year to 2.61 million units in September, data from the China Association of Automobile Manufacturers showed.

China’s automobile production topped 2.67 million units last month, up 28.1 percent from the same period of 2021, according to the association.

On a monthly basis, China’s auto output and sales went up 11.5 percent and 9.5 percent, respectively, in the period.

In breakdown, the sales of passenger vehicles in China surged 32.7 percent year on year to top 2.33 million units in September, continuing the sound growth between June and August, the data showed.

 

Top Australian Brokers

 

Thanks to multiple policy support, such as the reduction of purchase tax, China’s passenger car sales have returned to normal and showed a rapid growth trend, said the association.

In the same period, the commercial vehicles market also reported continuous recovery, with production and sales up 10.5 percent and 7.9 percent, month on month, respectively.

The policy of further reducing expressway tolls for trucks in the fourth quarter is expected to promote the growth of road logistics and ramp up the recovery of the commercial vehicle market, according to the association.

Sales of new energy vehicles (NEVs) have remained a bright spot in China’s auto market. Last month, the country’s NEV sales hit 708,000 units, soaring 93.9 percent over one year earlier.

More than 4.56 million NEVs were sold in China in the Jan.-Sept. period, up 110 percent year on year and taking up 23.5 percent of the total share of China’s auto market.

The country’s NEV market will maintain sound performance in the future, said the association, noting that the confidence of enterprises in the field is further enhanced as the country has extended the purchase tax exemption policy for NEVs to the end of 2023.

In the first nine months, 19.47 million automobiles were sold in China, up 4.4 percent year on year, with a pace 2.7 percentage points faster than the Jan.-Aug. period.

Despite the disruptions in the first half of the year, such as the price rise of raw materials and the COVID-19 pandemic, China’s policies on stabilizing growth and promoting consumption have effectively supported the automobile industry to overcome difficulties and maintain rapid expansion between June and September, said Chen Shihua with the association.

It is expected that China’s auto production and sales will continue robust expansion in the fourth quarter as the development environment continues to improve, supported by a raft of policies on stabilizing the economy.

Originally published by Xinhua