Car Sales Jump 23% in China

Sales of passenger vehicles in China soared 23% to 1.6 million units in July, according to the China Passenger Car Assn. It was the largest year-on-year gain in 18 months.

Analysts say the sharp jump was caused mainly by price cuts that helped lower dealer inventories. Demand also has been aided by the central government’s 50% cut in its new-car purchase tax on vehicles equipped with engines displacing 1.6 liters or less. The measure, which took effect last October, applies to roughly 60% of China’s car market.

CPCA reports that SUV/crossover sales last month jumped 45% compared with a 15% increase for conventional sedans.