China's light-vehicle sales rose 3.3 percent year on year to 1.75 million vehicles in September, led by strong SUV demand that ended an industrywide downturn for the past three months.
 
Last month, SUV sales surged nearly 59 percent from a year earlier to 566,500 vehicles, according to the China Association of Automobile Manufacturers.
 
But other product segments continued to post steep sale declines. In September, sedan sales dropped nearly 11 percent to 951,600 vehicles, while MPV deliveries dipped 4.1 percent to 161,300 units.
 
Microvan sales plunged 31 percent to 71,800 vehicles.
 
For the first nine months, China's light vehicle deliveries rose 2.8 percent from a year earlier to 14.5 million vehicles, as strong SUV demand offset sales declines of sedans, MPVs and SUVs.
 
Sales seem likely to continue growing for the rest of the year, now that China has halved the purchase tax on vehicles with engines of 1.6 liters or smaller. The tax cut, which took effect on October 1, will expire at the end of 2016.
 
The directive also forbade local governments from restricting the purchase of electric vehicles and reiterated support for development of electric cars, plug-in hybrids and batteries.
 
We will see major sales growth in the October numbers as the impact of tax cut kicks in," said Yale Zhang, a managing director at Autoforesight Shanghai Co. "Car buyers are recovering from a stock rout psychologically and starting to buy if they do need a car."
 

Source:Automotive News China