Car Sales in China Grow 6%

April deliveries of passenger vehicles in China rose 6% to 1.7 million units, according to the China Passenger Car Assn. The group says demand surged 36% for SUVs and fell 5% for cars.

But analysts note that dealer inventories remain higher than normal in spite of discounts as great as 35% off suggested retail prices for some models. Last October the central government cut the purchase tax rate 50% for cars with small-displacement engines in a bid to maintain sales growth.

China’s domestic brands have been able to reverse market share erosion in recent months with an array of low-priced SUVs. Local producers captured 45% of the market, up 1.8 points, in the first quarter, according to the China Assn. of Automobile Manufacturers.