Wholesales in China Slip 1%

Wholesale deliveries of passenger vehicles in China declined 1% to 2.2 million units in January, according to the China Assn. of Automobile Manufacturers. When commercial vehicles are added, volume grew 0.2% to 2.5 million units.

A slowdown was expected. Last year the central government stimulated new-car demand by cutting the sales tax from 10% to 5% on models with engines that displace 1.6 liters or less. In January the tax climbed to 7.5%. Market activity also was adversely affected by the early start of the Lunar New Year holiday.

CAAM says wholesales of SUV/crossover vehicles rose 11% to 881,000 units last month, led by a 15% jump to 543,000 units of Chinese-brand models. Sales volume for conventional sedans dropped 3% to 1.1 million cars.