Inspired by the national stimulus package for the auto industry, the Chinese auto market is continuing to turn around with sales amounting to 1.08 million units in March, a record high in terms of monthly sales, marking an increase of 30,000 units year on year.
Due to the reform on fuel tax, the decrease of oil prices and the issue of stimulus packages, the Chinese auto market has finally rebounded with a gradual increase in monthly sales. According to the data reported by the China Association of Automobile Manufacturers (CAAM), in January China sold 735,500 autos marking declines both year on year and month on month; in February, China sold 827,600 units, up 12.43 percent month on month and up 24.72 percent year on year. In March the Chinese auto market was unexpectedly busy with sales of over one million units. During the first quarter in 2009, China sold more than 2.64 million autos, up nearly six percent year on year.
According to the analysis of the CAAM, the sales increase is attributable to the rising sales of small passenger cars and economical saloon cars. Since such automobiles have relatively low prices and small profit margins, the auto producers who have increased their outputs are registering smaller profits.