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Business

China widens its lead as the world's No. 1 car market

Volkswagen back on top as tax cuts help overall sales climb 14% in 2016

GUANGZHOU/BEIJING The Chinese market for new automobiles enjoyed double-digit growth last year as consumers took advantage of a small-vehicle tax break, with Germany's Volkswagen reclaiming its No. 1 position, according to an industry report.

Car sales in China are now 60% higher than in the U.S.

Total sales of domestically produced vehicles, including commercial vehicles and exports, rose 13.7% on the year to 28,028,200 units on a factory shipment basis, according to a report issued by the China Association of Automobile Manufacturers on Dec. 12. Passenger car sales shot up 14.9% to 24,376,900 units, while commercial vehicles climbed 5.8% to 3,651,300 units. Growth was particularly notable for passenger cars qualifying for the tax incentive launched in late 2015.

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