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2016-12-12 12:50

EXPLOSIVE CAR SALES: China has reported a 17.2% increase in car sales compared to November 2015. Image: iStock

Beijing — Auto sales in China rose 17.2% in November over a year ago, driven by explosive demand for SUVs, as automakers prepared for the end of a key tax break and a potential slump in demand.

An industry group, the China Association of Automobile Manufacturers, said Monday that drivers in the world's biggest auto market bought 2.6 million cars, minivans and SUVs.

Bleak forecast

Beijing helped to shore up demand this year by cutting the sales tax but that is due to end Dec. 31. Industry analysts expect sales growth to cool to mid-single digits unless that break is extended.

Sales of SUVs jumped 41.5% in November over a year earlier to just over 1 million vehicles.


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