Vehicle Sales in China Rose to 24.6 Million Units in 2015

Wholesale deliveries of cars and commercial vehicles in China grew 5% to 24.6 million units last year, according to the China Assn. of Automobile Manufacturers. It was the smallest year-on-year increase in three years.

Passenger vehicle sales rose 7% to 21.1 million units in 2015, buoyed by a government tax cut in October on new small cars. Demand for commercial vehicles dropped 9% to 3.5 million trucks and buses.

CAAM says overall volume last year was hurt by China’s stock market rally, which diverted spending on big-ticket items. Sales continued to suffer when the market later sagged, leaving consumers with less discretionary money to spend. The association estimates the two swings eliminated about 500,000 sales.