China first-half car sales on the rise

Car sales in China increased to 11.68 million vehicles in
the first half of 2014, according to the China Association of Automobile

AFP reports that this was an increase of 8.4 per cent compared
to last year. In addition, June sales rose by 5.2 per cent compared to the same
time last year.

In terms of passenger vehicles, sales rose by 11.2 per cent
to 9.63 million in the first half of the year.

China is the largest car market in the world and it is
becoming more and important to foreign car markets.

Earlier this month, German carmaker Volkswagen announced it will build two new manufacturing facilities in China. The two plants will be in the
eastern city of Qingdao and the northern city of Tianjin.

The company said in a statement the two locations were
chosen by Volkswagen along with joint venture partner FAW. The key site factors
were high qualification levels and the infrastructure available.

And French car maker PSA Peugeot Citroen will also build a
new manufacturing plant in the city of Chengduin in Western China with its new
shareholder Dongfeng. It will be the company’s fourth plant in the country.

PSA Peugeot Citroen said in a statement the new plant for
Dongfeng Peugeot Citroën Automobile (DPCA) will be built to support growth in
its unit sales. Work on the facility will start later this year and the first
car is scheduled to roll off the new assembly lines in late 2016.