China’s passenger-vehicle sales rose 47 percent in May, the biggest jump since February 2006, as tax cuts and government subsidies helped extend the country’s lead over the U.S. as the world’s biggest auto market this year.
Chinese drivers bought 829,100 cars, sport-utility vehicles and other passenger vehicles last month, the China Association of Automobile Manufacturers said in a statement today. Overall vehicle sales rose 34 percent to 1.12 million.
China has cut retail taxes on vehicles and handed out subsidies in rural areas after auto sales slowed on the global economy and job concerns. The moves helped General Motors Corp., the largest overseas automaker in China, to boost sales in the country 34 percent in the first five months of the year even as plunging U.S. demand forced it into bankruptcy.