CAAM expects 10-15% rise in 2011 car sales

The China Association of Automobile Manufacturers (CAAM) believes vehicle sales in China this year will increase 10 to 15 percent.

Although the Chinese government cancelled the preferential policy on purchase tax of low emission cars, and Beijing municipal government's new policies to curb traffic has cooled the auto market and restricted car purchases -which may cause other city governments to follow, positive expectation on the development of urbanization and industrialization in China could still inspire consumption. Moreover, industrial restructuring and subsidies that encourage the production of energy-saving vehicles will be the main keynote for the automobile industry in the country.

Auto sales in China hit 18.06 million units last year, up 32.37 percent from the previous year, CAAM announced Monday.