Car sales in China rose 37% in April, boosted by tax incentives.
The rise in sales means China has now overtaken the USA to become the world’s largest automotive market, after total vehicle sales increased by a quarter to 1.15 million.
In a bid to revive flagging car sales, the Chinese Government announced buyers of smaller cars would receive a tax incentive.
In addition, India has announced an increase in car sales, driven by factory gate tax cuts and lower borrowing costs.
In April, car sales rose 4.2% to 102,900 - the third month in a row car sales increased.
The global economic downturn has resulted in a slump in demand for big-ticket items, such as cars. This has affected carmakers worldwide with many cutting back on production, slashing jobs and seeking funding to see them through the downturn.
In a bid to boost the ailing car industry, many Governments have been announcing schemes with the UK recently announcing a “scrappage scheme”, which pays consumers to get rid of their old cars and replace it with a more environmentally friendly car.
The scheme has proved successful in Germany, who reported a 40% increase in new car sales for March.
The Society of Motor Manufacturers and Traders (SMMT) recently revealed yet another fall in UK car sales in April.
