Passenger vehicle sales in China registered a 15 percent increase over the same month last year, but declined on month-on-month basis.
Total domestic sales of cars, sports utility vehicles, multi-purpose vehicles and minivans increased by 15.3 percent to 1,402,764 units in January, as compared to the corresponding month of 2010. However, the volume was 4.8 percent lower than that recorded in December last year, the China Passenger Car Association stated.
The month-on-month decrease was seen as China's central government ended tax incentives for buyers of small cars as well as subsidies for trade-ins, while a quota policy was launched in Beijing to curb car purchases.
Analysts said that strong demand in smaller cities has helped to compensate somewhat for the stagnant sales in big cities caused by official policies.