Output and sales have increased by one-third for the first four months of the 2006 compared to 2005, with 2.47 million and 2.41 million units respectively. For all of 2005, output and sales output and sales reached 5.71 million and 5.76 million units, up 12.56% cent and 13.54% respectively from 2004.

From January to April, sales of passenger vehicles cars, sport utility vehicles, multipurpose vehicles and mini vans surged by almost half to 1.72 million units. Car sales alone jumped by three-fifths to 1.21 million units during the period—50% of total sales. Low-emission cars represented more than half of the car sales.

Sales of cars with an engine capacity of between 1 and 1.6 liters more than doubled to 646,900 units between January and April this year—27% of all vehicle sales.

“This is due to soaring oil prices, the government’s removal of restrictions on low-emission cars and reductions in consumption taxes,” Zhu [Yiping, spokesperson for the auto manufacturers association] said yesterday.

The central government in January issued a notice demanding local authorities scrap arbitrary limitations on the use of low-emission cars. On April 1, consumption taxes on cars with an engine capacity of between 1 and 1.5 liters were slashed to 3% from 5%.

The commercial vehicle sector in China saw much milder growth than the passenger vehicle sector in the first four months of this year, with output and sales reaching 718,000 and 687,800 units respectively in the period, an increase of 5.84% and 4.92% year-on-year.