China's car sales growth to slow in 2017

BEIJING - Automobile sales are expected to slow next year after a boom in 2016, the Ministry of Commerce (MOC) said Thursday.

Growth in auto sales in 2017 could slow to an annual 2 percent to 6 percent, said MOC spokesperson Shen Danyang, citing industry estimates.

About 25 million cars were sold in China in the first 11 months this year, up 14.1 percent year-on-year thanks to a preferential car purchase taxation policy and other government measures.

Earlier this month, the Ministry of Finance continued its preferential car purchase taxation policy but cut the tax reduction ratio for 2017.

A high comparison base and a discounted preferential taxation policy will drag down auto sales growth next year, Shen said.