China’s Car Sales Make Modest Rebound

Wholesale deliveries of cars, MPVs and SUVs in China, which dipped 0.3% in September, rose 6% to 1.3 million units last month compared with October 2011, according to the China Assn. of Automobile Manufacturers.

Analysts say the rebound was fueled by heavy discounting to move excess inventory off dealer lots.

Japan's automakers also boosted incentives in hopes of overcoming strong anti-Japan sentiment among Chinese consumers. Combined sales by Japanese brands in China plunged 38% to 98,900 vehicles last month.

European, South Korean and American brands are benefiting from Japan's losses in China. Among the October gains for foreign carmakers (including joint ventures) were a 14% increase to 251,800 vehicles at General Motors, a 37% jump to 80,600 units at Hyundai and a 48% surge to 60,500 units at Ford.

From January through October, passenger vehicle sales have climbed 7% to 12.6 million vehicles. Analysts expect CAAM to lower its current forecast for a full-year gain of 11% to 16.1 million units.

Sales of all passenger and commercial vehicles in China last month grew 5% year over year to 1.6 million units, the trade group reports. It says motor vehicle volume in the 10-month period rose 4% to 15.7 million units.