China’s Breakneck Auto Sales and Why the DOJ is Probing Sanofi

Passenger vehicle sales figures for the first two months of 2013 out of the China Association of Automobile Manufacturers reveal that deliveries were higher by 20 percent to 2.84 million units compared to 2.37 million units a year ago, says a report in Bloomberg. The figures showed this was the strongest market since 2010, despite certain other economic indicators showing a slowdown in the economy. Ford Motor Co (NYSE:F) and Hyundai Motor Co were major beneficiaries of the surge in demand, with their deliveries up by over 40 percent during these two months. And the best may yet to come, considering the association has forecast that total vehicle sales this year in China could exceed 20 million numbers for the first time ever. General Motors (NYSE:GM) reported a rise in China sales of 7.9 percent to over 525,000 vehicles during January and February, overtaking Toyota Motor Corp (NYSE:TM). Japanese automakers, including Honda Motor Co (NYSE:HMC) and Nissan Motor, all reported lower sales within the period as consumers protested against Japan’s territorial dispute with China relating to a group of islands. Japanese autos also faced tough competition from German car makers such as Volkswagen’s Audi, which grew sales by 16 percent. Overall German brands took over a 20 percent share of the Chinese market.