Sport utility vehicles continued to fuel growth in China's car market as sales jumped 33.6 per cent year on year to 156,500 last month - the biggest increase among all car types.
Car sales were up 12.46 per cent to 1.27 million, according to figures released by the official China Association of Automobile Manufacturers (CAAM) yesterday, although for the first four months of the year growth in sales was just 1.89 per cent.
The association and major carmakers have forecast that this year's car sales will be up by about 8 per cent on last year, although a senior CAAM executive has cautioned that if the economy remained weak during the second half, growth in car sales could fall to five per cent.
While SUVs continued to lead growth, sedans also saw a year-on-year sales increase of 12.61 per cent last month, with sales of multi-purpose vehicles growing by a more moderate 7.3 per cent.
The China Passenger Car Association said in its latest report that the Beijing auto show last month helped lift sales in the final week of the month.
However, to meet their sales targets, many dealers also raised the rate of their discounts after a lukewarm response from buyers during March sales promotions, as high fuel prices and a slowing economy continued to hit consumption appetite.
Foreign and luxury brands all reported good sales. General Motors' joint venture in China sold a record 227,217 vehicles in April - an increase of 11.7 per cent over a year ago.