Vehicle sales soar past record 20m in China

China became the first country where more than 20 million vehicles were sold in any given year as Toyota Motor to General Motors and Volkswagen delivered a record number of cars.

Wholesale deliveries rose 14 per cent to 21.98 million units last year, the China Association of Automobile Manufacturers said yesterday. Sales of vehicles, excluding buses and trucks, rose 16 per cent to 17.93 million.

While the mainland's motorisation has been a boon for foreign carmakers - all the major ones saw record sales in the country last year - pressure is building on the government to step in as pollution chokes residents and traffic congestion turns roads into car parks.

With air quality deteriorating so much that children and the elderly are regularly warned to stay indoors, Beijing is tightening its vehicle quotas and Tianjin is capping the number of licences issued this year.

"As more big cities put in place restriction measures, carmakers will have to count on smaller cities and inland areas for growth," said Harry Chen, of Guotai Junan Securities.

GM saw sales rise 11 per cent to 3.16 million cars last year. Although it outsold foreign rivals on the mainland for eight years, it may lose that lead when Volkswagen reports this month. The German firm beat its previous annual record by selling 2.96 million units in the first 11 months.