China car sales rebound as output recovers

China's passenger-car sales climbed in June, reversing a decline in the previous month, as rising income boosted demand and Japan-ese automakers restored production following the March 11 earthquake. Deliveries of cars including multipurpose and sport-utility vehicles to dealerships rose 6.2 per cent from a year earlier to 1.1 million units last month, the China Association of Automobile Manufacturers said. The increase follows a 0.1 per cent decline in May, the first drop since January 2009. Shortages Passenger-car sales fell in May after Japanese auto companies including Honda Motor Co and Toyota Motor Corp cut production when the earthquake caused shortages of power and parts. Deliveries rebounded last month, boosted by demand from first-time owners and as dealerships restocked inventory, said John Zeng, an analyst with industry researcher J.D. Power & Associates. Article continues below "A large percentage of the Chinese are first-time buyers," said Zeng.