China's auto sales in 2010 may reach 15 mln units

China's auto output and sales this year are expected to rise about 10 percent to 15 million units, Xinhua News reported Monday, citing an industry official.

In 2010, the Chinese government will continue to support the auto industry, which is seen as a pillar of the national economy, said Dong Yang, executive vice president and secretary general of the China Association of Automobile Manufacturers (CAAM).

Vehicle sales in China last year surged 46.2 percent to 13.6 million units, boosted by tax cuts for small cars and subsidies for clean new vehicles. The record sales in China coincided with the lowest sales of 10.4 million light vehicles in the US since 1982.

China's auto market is expected to retain the world's No. 1 position this year and exceed sales in the US by at least two million vehicles. But it probably won't repeat last year's strong sales.

A scaling back of government stimulus may precipitate a slowdown. One year ago China halved (to 5 percent) the sales tax on cars of 1.6 liters or smaller. But this year, buyers will pay 7.5 percent instead of the 5 percent rate.

Auto sales in China over the past 15 years have grown an average 16.7 percent annually, the official said. Sales in 2008 totaled 9.4 million vehicles, up 6.7 percent from a year earlier.