Economy / China
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China
June 2008 | Ratings UpdateSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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In yet another indicator that underlying economic activity remains robust in China, car sales rose 15.59% y-o-y in May to 564,600 units, accelerating from annual growth of 10.83% a month previous. This took year-to-date sales above the 3mn mark, while total vehicle sales, which climbed 17.04% y-o-y in May, rose to 4.34mn for the year so far, even as decade-high inflation continues to erode disposable incomes. However, this development is partly a result of the generous fuel subsidies provided by the Chinese government, which keep domestic pump prices artificially low and protect drivers from the full effects of record high crude oil price.