China inventory worry as sales rise

China’s sales of passenger vehicles rose for the ninth month out of the last ten, this time helped by cuts to its purchase tax.

Both GM and Toyota reported increased deliveries, and the China Passenger Car Association said sales of cars, SUVs and multi-purpose vehicles rose 11% to 1.76m last month.

April showed growth of 6.4%, and the year to date shows a boost of 9.12m vehicles.

The main concern in the Chinese market is inventory levels – which have remained above what is considered healthy for the last nine months.

There are 120 new models being launched in China this year.