Chinese Auto Sales Slow Down in January After Sales Tax Hike

An industry group says China’s auto sales shrank in January as the government increased a sales tax following a cut earlier that helped to shore up demand.

The China Association of Automobile Manufacturers said Monday sales in the world’s biggest auto market shrank 1.1 percent in January compared with a year earlier to 2.2 million. Total vehicle sales, including trucks and buses, rose 0.2 percent to 2.5 million.

China’s auto sales rose 15 percent last year after Beijing cut the 10 percent sales tax on small-engine vehicles by half. The government restored part of the reduction in January, raising it from 5 percent to 7.5 percent.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza