Car Wholesales in China Climb 17%

Shipments of new passenger vehicles to dealers in China last month reached 2.59 million units, up 17% year on year, according to the China Assn. of Automobile Manufacturers. That compares with 20% growth in October.

Last week the China Automobile Dealers Assn. reported that retail deliveries of passenger vehicles to consumers jumped 20% to 2.42 million units. Many major carmakers predict record full-year volumes this year.

Both trade groups agree that the market surged in November—and is likely to do so again this month—because of consumer worries that the central government will drop a tax cut on small cars at year-end. Analysts predict sales growth will slow if Beijing doesn’t renew the discount, which applies to vehicles with engines that displace 1.6 liters or less.