Domestic passenger vehicle sales hit a new record high in August, nearly doubling over last year, far beyond industry expectations.

It is also the first time the monthly sales in August is the highest in the year.

"The booming sales in August has surpassed even the boldest prediction in the industry, as previously sales in August are normally the weakest in the whole year," said Cui Dongshu, deputy secretary-general of the National Passenger Car Information Exchange Association.

According to the association, passenger vehicle sales, including cars, MPV (multi-purpose vehicle), SUV (sports-utility vehicle) and minivans, soared to 849,376 units in August, up 94.7 percent year-on-year.

Nearly 621,110 sedans were sold during the period, an increase of 84.2 percent from a year ago, while MPV and SUV sales grew 52.6 percent and 119 percent to 19,241 and 62,467 units respectively.

The domestic sales miracle should not be attributed alone to the government stimulus package, but also to the robust natural demand, which reflects China's rapid growing economy, Cui said.

He also predicted the market would continue to record brisk sales this month, estimated at around 870,000 units on a conservative basis. For the full year passenger car sales are expected to reach 9.6 million units.

Chen Bin, chief director of the industry coordination department of the National Development and Reform Commission, said at a forum over the weekend that automobile sales in China may grow 28 percent over last year to reach 12 million this year.

(China Daily September 8, 2009)