Vehicle sales surge 13.3% in Oct after tax cut

Passenger vehicle sales rose at the fastest pace in 10 months after the government cut a tax on purchases in October, benefiting carmakers like Great Wall Motor Co and adding to evidence that demand is rebounding in the world's largest auto market after a summer slowdown.

Wholesale deliveries of sedans, SUVs and multipurpose vehicles climbed 13.3 percent to 1.94 million vehicles in Oct, according to the China Association of Automobile Manufacturers. Chinese carmakers outperformed the market, and boosted their share of sales by 2.1 percentage points from a year earlier.

The pickup in car demand reinforced official data released on Wednesday showing retail sales increased faster than estimated in October, and comes as Jack Ma's Alibaba Group Holding Ltd set a new record for its annual Singles' Day shopathon. The role of consumer spending is increasing in China, as wage gains create a burgeoning middle class that fuels sales of everything from movie-theater tickets to smartphones and Internet services.