Car sales and output pass the 12 million mark in China

Chinese annual car sales and production have both exceeded 12 million, confirming China as the world's largest car market, state media has said.

The China Association of Automobile Manufacturers expects car sales and output to top 13 million for the full year, the Xinhua News Agency reported.

China has never produced more than 10 million cars in one year before.

Despite the downturn and falling sales at most global carmakers, demand for cars in China is booming.

State incentives, such as tax cuts on small cars, have boosted sales.

Like many other governments around the world, China has also introduced subsidies to trade in older vehicles.

Previously, only the US and Japan had produced 10 million cars in a single year.

Domestic Chinese car sales overtook those in the US for the first time in December of last year.

Source: BBC News