Global automakers in China have reported that their sales have increased in 2016 as the Chinese consumers rushed to buy cars that would make the most of a tax incentive when purchased.
Unlike previous years where Toyota led the automotive sales in China, Honda led the 2016 sales as they reported a year-on-year sales grownth of 24% to 1.25 million vehicles with mostly their hot sports-utility vehicles bought in China.
Toyota reported an 8.2% rise in their 2016 sales and the company expects that they will be able to sell at least 1.2 million vehicles this year, similar to their 2016 sales.
Ford also reported an increase in sales in China, reaching to 11.9% to 1.24 million vehicles for the entire year. However, Reuters reported that this number does not include the luxury Lincoln brand the company also sells in China.
Nissan had reported that they were able to record an increase of 8.4% in their China sales to 1.35 million vehicles.
General Motors and their partners reported that their 2016 sales in China have increased up to 7.1% to 3.87 million vehicles. This number made the Chinese market GM's top market for the fifth straight year.
In 2016, the demand for cars in China had moved due to the country's decision to cut taxes on small-engine cars. The incentive - which halved the purchase tax of cars with 1.6 liter engines or smaller to 5% - is now recalled as the tax will rise up to 7.5% in 2017 before returning it to 10% in 2018. Analysts say that this will prevent a massive sales drop on the industry's growth.
