Vehicle Sales Drop 2% in China

Automakers sold 1.62 million cars, trucks and buses to dealers in China last month compared with 1.65 million vehicles in September 2011, according to the China Assn. of Automobile Manufacturers.

Wholesale deliveries of passenger cars dipped 0.3% to 1.32 million units in September, dragged down by a 41% plunge in demand for Japanese vehicles to 160,000 units. Commercial vehicle volume slid 8% to 301,800 units.

CAAM had predicted that the country's sales would revive in the second half of 2012 after sluggish January-June demand.

The Chinese market share of Japanese brands fell to 12.2% in September amid strong anti-Japan sentiment from 20.5% a year earlier. But many others posted sales gains, including American brands (+15%), German makes (+14%), South Korean marques (+9%) and domestic brands (+8%).

China's vehicle sales in the first nine months of 2012 increased 3% year over year to 14.09 million units, CAAM says. Passenger vehicle demand in that period rose 7% to 11.27 million units.

Chinese auto stocks advanced after the sales report on expectations that the government will revive incentives for vehicle buyers in rural areas, the state-run China Securities Journal reports. The newspaper adds that the program is likely to be expanded to include heavy-duty trucks.