Tax Cut Boosts Car Sales 11% in China

Sales of passenger vehicles in China jumped to 1.85 million units in October from 1.66 million a year earlier, according to the China Passenger Car Assn. It was the market’s biggest increase in retail deliveries since March.

Growth was pushed by a reduction to 5% from 10% in a government tax on cars powered by engines displacing 1.6 liters or less. Dealers also have been offering hefty sales incentives to help reduce bloated inventories.

October sales were led by a 69% surge in demand for SUV/crossover models, according to CPCA. It reports that deliveries of MPVs and minivans rose 7%, but sales of conventional sedans fell 5%.