Driven by purchase tax preference, the sales and production of passenger cars hit a new record, growing steadily in general. In 2016, the production and sales reached 24,421,000 and 24,377,000 units respectively, up 15.5% and 14.9% year on year, 1.0 percentage point and 1.3 percentage points higher than the overall growth of automobiles. The rates of contribution to the overall growth reached 92.3% and 94.1% respectively.
As seen by type, comparing with the same period last year, SUV continued a high-speed growth, of which the production and sales were up 45.7% and 44.6%. MPV also enjoyed a rapid growth, with an increase of 17.1% and 18.4% in production and sales respectively. As for cars, the production and sales witnessed growth as well, up 3.9% and 3.4% respectively. While, the crossed passenger cars were not good, of which such figures decreased by 38.3% and 37.8%.
In 2016, the sales of passenger cars with engine capacity of 1.6L and below reached 17,607,000 units, up 21.4% year on year, 3.6 percentage points higher than the same period last year, accounting for 72.2% of the total sales of passenger cars. The contribution rate to the sales of passenger cars was 97.9%.
The tax preference for 1.6L and below had exerted a very positive role in promoting growth as well as energy conservation and emission reduction.