China's new-vehicle sales decelerate in January

Lunar New Year holiday, tax increase dampen demand

0213N Auto Guangzhou

China's new-vehicle sales growth nearly screeched to a halt in January amid a tax-rate increase.

YU NAKAMURA and SHUNSUKE TABETA, Nikkei staff writers

GUANGZHOU/BEIJING -- China's growth in new-vehicle sales shrank in January to a paltry 0.2% on the year, an industry group said Monday.

Total sales, including trucks and other commercial vehicles, totaled 2,519,500 units on a shipment basis, according to the China Association of Automobile Manufacturers. Sales of passenger cars declined 1.1% to 2,218,200, contrasting with 11.3% growth for commercial vehicles to 301,300.

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