Car Sales In China Rose 18% in November

Retail deliveries of passenger vehicles in China climbed to 2 million units last month from 1.7 million in November 2014, says the China Passenger Car Assn.

The association attributes the gain to unusually cold weather, a 25% jump in demand for SUVs and, ironically, air pollution. The group notes that consumers with children perceive the air quality inside a vehicle to be better than outside.

Heavy smog has blanketed much of China for weeks. In Beijing, officials declared a red alert, reduced traffic volumes and closed schools and some factories.

But Bloomberg News cites an analyst who says sales were aided primarily by a nationwide 50% cut in the purchase tax on vehicles equipped with engines displacing 1.6 liters or less. The news service observes that the government is struggling to balance its desire to improve air quality with the need to maintain economic growth.