Chinese car sales rose dramatically in January, according to the Oriental Morning Post.

The Shanghai-based newspaper claims that sales were up 70 per cent on the same period last year reaching 330,000 units.

Rao Da, general secretary of the Union of National Passenger Car Market Information told the newspaper that consumers finally took the plunge after losing patience waiting for car prices to fall further following cuts in 2004.

"Consumers rushed to buy cars before the lunar New Year in January, having determined that there is little leeway for further price cuts," he said.

Analysts are predicting that sales will continue to grow this year, with a figure of around 20 per cent thought to be close to the mark, slightly down on 2005's figure of 26.5 per cent.

Although the Chinese automotive industry saw improved sales in 2005, profits were down by 40 per cent as the price cuts necessary to remain competitive hit the balance sheets.


Ÿ Adfero Ltd