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China’s auto-industry is certainly not feeling the same hurt that other markets’ auto-industries are feeling; February’s passenger car sales were 55 percent greater than a year previous. The Chinese car market has been booming, as China has overtaken the U.S. as the world’s largest. Aggressive consumer spending, and policy incentives have helped fuel the surge.

While the February figure is certainly an impressive one, let us not forget that in January, the Chinese car market saw a total of 1.32 million units sold. Industry insiders are not discouraged, however and expect a slower rate for the second half of the year. “February sales are still pretty solid given the circumstances. It’s unrealistic to expect a doubling of sales every month,” said John Zeng, an analyst with IHS Global Insight.

Beijing’s stimulus program is in large part responsible for the auto industry surge. These incentives include subsidies for consumers in rural areas, and tax incentives for the purchase of smaller vehicles. These policies have also helped American and Japanese automakers do well in the market as Ford, GM, and Toyota, who have also posted big gains versus last year.

- By: Stephen Calogera

Source: Automotive News (Subscription Required)