China auto market has bumper year but 2017 outlook is weaker

HONG KONG (AP) — China's auto market had a bumper year in 2016 as sales grew by 15 percent, with drivers rushing to buy cars before a tax break expired at the end of the year.

The data released Thursday showed that automakers sold 24.4 million cars, minivans and sport-utility vehicles in China.

Booming sales, driven by strong demand for SUVs, were helped by the Chinese government's cut in the sales tax.

Sales of Chinese SUVs jumped 58 percent to 5.27 million for the year, accounting for about half of all domestic-brand auto sales.

The U.S. auto giant and its joint venture partners sold a record 3.87 million vehicles in China in 2016, up 7.1 percent from 2015.