China 2010 vehicle sales surge 32% (by Chris Oliver)

HONG KONG (MarketWatch) -- China's sales of automotives rose 32.4% last year, totaling 18.06 million units, according to data released Monday by the China Association of Automobile Manufacturers. Sales of passenger vehicles were up 33.2% to 13.76 million vehicles. The association said its expects China's car sales to rise 10% to 15% this year, even as an incentive policy for the purchase of vehicles with engines of 1.6 liters or smaller, which accounted for about 69% of passenger vehicle sales in 2010, expired Jan. 1. The end of the incentive program means these vehicle will be once again subject to a 10% purchase tax, ending what had been a temporary tax holiday that saw the levy drop to 7.5%.