Vehicle Sales in China Climb 8%

Wholesales of cars and commercial vehicles in China jumped 8% to 2.5 million units last month, bolstered by the government’s tax cut on cars equipped with small engines, according to the China Assn. of Automobile Manufacturers.

CAAM says last month’s demand for passenger vehicles was 2.2 million cars compared with 2.0 million in January 2015. Commercial vehicle deliveries dropped to 303,600 units from 314,300.

Analysts note that January-February results are difficult to compare year on year. That’s because sales always surge ahead of the week-long Lunar New Year celebration, which occurs at different dates each year.

CAAM predicts full-year vehicle sales in China will rise 6% this year compared with about 5% growth in 2015.