Retail Car Sales in China Surged 16% in 2016

Deliveries of cars, crossovers, multipurpose vehicles and SUVs in China climbed 16% to a record 23.9 million units in 2016, according to the China Passenger Car Assn. December sales climbed 17% to 2.76 million units.

CPCA says demand for SUVs zoomed 44% to 8.8 million units last year. Car sales rose 5% to 12.1 million units.

Results were aided by an end-of-year surge in demand by consumers seeking to take advantage of a government tax cut on models with small engines. The cut, from 10% to 5%, was replaced by a 7.5% tax rate this month.

A Bloomberg News poll of analysts and association executives predicts the aftermath of the pull-ahead sales and higher tax will cause growth in China’s overall market, including commercial vehicles, to slow to 4%-5% this year.