China's Q1 auto sales may exceed U.S.

Apr. 8, 2009 (China Knowledge) - China is likely to post a record high in auto sales in March, with 14 major automakers selling 1,026 million vehicles during the period, which account for 90% to 91% of the total market, the China Daily reported on Wednesday, citing Chen Bin, director general of the Department of Industry with the National Development and Reform Commission (NDRC).

The new sales record may help the country to exceed the U.S. for three consecutive months, becoming the largest auto market in the world.

The sales boom came after the Chinese government's incentives to boost the auto market. The government cut taxes on cars with engine capacity of or less than 1.6 liters. Besides, car purchases by rural residents are also offered subsidies.

The small car sector, which posted strong sales growth in the first two months, will remain the major driving force for sales in March, according to the report.