Car Sales in China Climb 18%

Wholesale deliveries of passenger vehicles in China rose to 1.31 million last month from 1.11 million in February 2013, according to the state-supported China Assn. of Automobile Manufacturers.

Vehicle sales including trucks and buses also jumped 18% to 1.6 million units.

Major main-market foreign brands reported strong gains in February. They were led by Ford (+67%), Toyota (+43%), Honda (+28%) and General Motors (+20%). Market leader Volkswagen has not yet reported its sales for the month.

Sales of Chinese-brand vehicles dropped to about 38% of the market from 43% a year earlier. CAAM's secretary general blames the decline on "weak innovation and competitiveness" among domestic manufacturers. He says it may take such companies 10 years to become competitive."

CAAM predicts full-year vehicle sales in China will grow about 10% in 2014 compared with 14% last year, dampened by China's efforts to cut air pollution and discourage conspicuous consumption.