New car sales for General Motors Co., Ford Motor Co. and Volkswagen rose in October as total market volume increased by 27.1 percent, as compared to the prior year.
This extended a rebound from August as people hurried to buy cars before the policy incentives of Beijing expire at the end of 2010. However, other automakers like BYD and Toyota Motor saw a decline in their sales for various reasons.
Industry observers say that in November and December, monthly sales could top the 1-million mark, thanks to those year-end advertising campaigns by carmakers who want to exceed or achieve their yearly sales target.
The China Association of Automobile Manufacturers (CAAM) said that a total of 1.2 million sport utility vehicles, sedans, and multi-purpose vehicles were shipped to dealers in October.
In comparison, 946,400 units were sold a year earlier. In 2009, Beijing introduced tax incentives for cars with engine sizes of 1.6 liters or smaller.
This move boosted China’s ranking to become to the world’s biggest auto market that year, surpassing the United States. The incentives, which were cut back since January 2010, are set to expire on Dec. 31. [via autonews - sub. required]