Domestic car sales in China increased by five per cent on a year-on-year basis during March, according to new figures released today (9th April).

The China Association of Automobile Manufacturers (CAAM) has revealed that there were a record 1.11 million units sold over the course of the month, Xinhua News Agency reports.

This represents an increase of 34 per cent from February's figure of 827,600 units, while also meaning that sales increased by 3.88 per cent to about 2.67 million units in the first quarter of the year.

The improved sales statistics are being attributed to a number of recent government incentives, such as halving the purchase tax to five per cent for cars with engines up to 1.6 litres.

In addition, the CAAM data showed that automakers in China produced a total of 1.1 million vehicles during March, a year-on-year increase of 5.55 per cent.

The figures also mean that the prospect of overtaking the US auto industry has moved another step closer, with Americans buying just 857,735 new vehicles last month, a yearly drop of 37 per cent.

Sources:

China auto sales hit record 1.11 million in March (09/04/09)
http://www.google.com/hostednews/ap/article/ALeqM5jnLvATfENcYIMMfdPa2_raXimdNQD97ER77O0

China's home-made car sales hit new high in March (09/03/09)
http://www.chinadaily.com.cn/bizchina/2009-04/09/content_7662839.htm