China cements status as world's largest car market

(January 11, 2010) China's auto sales exceeded 13.5 million units in 2009, state media reported Friday, cementing the Asian giant's status as the world's biggest car market. Vehicle sales rose more than 40 per cent from a year earlier, Xinhua news agency said, citing figures provided by an unnamed source.

In 2008, auto sales rose around eight percent to 9.4 million units, according to official figures.

China's car sales soared in 2009 due to government policy incentives, outstripping those of the United States for the first time in January last year to make the nation the world's biggest auto market. Government measures included slashing taxes on cars with engines smaller than 1.6 liters and subsidizing clean-technology vehicles. The government also subsidised auto purchases for farmers.

U.S. auto sales fell 21.2 per cent to 10.43 million vehicles in 2009.