Car Sales Climb 9% in China

Heavy discounting helped carmakers boost passenger vehicle deliveries in China to 1.40 million units last month from 1.28 million in June 2012, according to the China Assn. of Automobile Manufacturers.

June's 9% sales increase, which matched the previous month's gain, occurred despite a credit shortage and growing fears that the country's economy is slowing.

China's total motor vehicle volume, including trucks, vans and buses, grew 11% to 1.75 million units in June.

Auto deliveries in the country last month jumped 21% to 2.9 million vehicles for German brands, 17% to 2.3 million units for Japanese marques and 13% to 1.8 million units for U.S. makes. Chinese brands posted an advance of only 6% to 5.3 million vehicles.

Foreign carmakers and their local partners that reported higher June sales in China included General Motors (+11% to 236,200 vehicles), BMW (+7% to 184,500 units and Ford (+44% to 72,300 units). Nissan's volume dropped 8% to 101,400 units.

From January through June, passenger vehicle deliveries in the country climbed 14% from a year earlier to 8.67 million units, CAAM says. Total motor vehicle sales rose 12% to 10.78 million units in that period.