China Forecasts Vehicle Sales to Accelerate After Tax Cut
- Registration quotas, slowing economy dented demand last year
- Purchase tax on small passenger cars was lowered in Oct.
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China’s vehicle sales are forecast to accelerate in 2016 after climbing at the slowest pace in three years as the government cut a tax on purchases of small passenger cars.
Total deliveries may gain about 6 percent to exceed 26 million vehicles, the state-backed China Association of Automobile Manufacturers said Tuesday in Beijing. That compares with the 4.7 percent growth last year to 24.6 million units, the smallest rate of increase since 2012.