China's light-vehicle sales rose 9.8 percent year on year to 2.06 million vehicles in March as strong sales of crossovers, SUVs and multipurpose vehicles offset weak deliveries of sedans and microvans.

 

Last month, combined sales of crossovers and SUVs surged 45 percent to 693,100 vehicles, according to the China Association of Automobile Manufacturers. Deliveries of MPVs jumped nearly 18 percent to 234,200.

 

But the sedan and microvan segments continued to contract. Sedan sales dropped 3.3 percent to 1.04 million vehicles while microvan deliveries slumped 28 percent to 89,600.

 

For the first three months, China's light-vehicle sales rose 6.8 percent year on year to 5.67 million vehicles on demand for crossovers, SUVs and MPVs.

 

Strong industry sales in March suggest that the auto industry continues to benefit from the central government's decision in October to halve the purchase tax on vehicles with engine displacements of 1.6 liters or smaller.

 

The government cut the tax to help the industry pull out of a sales slump last summer.