Strong auto sales continue in China

Sales reports from major auto makers suggest 2010 is shaping up to be another boom year for car sales in China. General Motors reported last Thursday that it sold nearly 220,000 vehicles in China in January.

The figure was up 97 percent from a year earlier and it was the first time monthly sales have surpassed 200,000. A statement from GM says it's a positive sign for 2010 as a whole following last year's industry record. GM's sales in China rose 67 per cent to a record 1.8 million vehicles in 2009 amid tax cuts and incentives to help boost the industry. China is due to announce official auto sales figures next week.

In January, sales remained strong partly because people are buying cars ahead of the Lunar New Year. Some analysts expect sales growth to slow in February.