China sold 735,500 units of vehicles in January 2009. The number far surpasses the sales in the US where monthly sales plummeted 37% from last January to 656,693 vehicles, the worst since 1963.
China produced 658,800 units of vehicles last month, a 20.22 percent drop compared with a year earlier, but an increase of 5.07 percent over December.
The Chinese government passed a stimulus package for the once-thriving auto sector last month, halving the purchase tax on vehicles with engine capacity of less than 1.6 liters, and spending 5 billion yuan on subsidies to farmers for replacing three-wheeled vehicles or outdated trucks with small, 1.3-liter or less, vehicles. The moves were aimed at boosting automobile sales in rural areas and promoting more energy efficient vehicles.
As a result, small passenger cars, with engine capacity of less than 1.6 liters, became the only group with rising sales in passenger car segment in January.