Incentives Help Boost China’s Car Sales 6%

Passenger vehicle sales in China climbed to 1.70 million units in September from 1.59 million a year earlier, according to the China Assn. of Automobile Manufacturers.

September's 6% growth compares to advances of 14% in June, 12% in July and 9% in August.

Analysts says last month's pace, the slowest in 19 months, was bolstered in part by new government incentives on fuel-efficient cars, most of which are local brands. The program pays 3,000 yuan ($490) on the purchase of approved models with fuel consumption ratings of less than 5.9 liters per 100 kilometers (at least 40 mpg).

But foreign brands continue to report strong gains in China. September sales climbed 26% for Toyota, 23% for Honda, 20% for Nissan and 15% for General Motors.

CAAM says China's cumulative passenger vehicle sales in January-September totaled 14.2 million units, up 10%.