Car sales in China in April were 25 per cent higher than in the same month last year – and for the third month in a row, car sales in China exceeded those in the United States.

The sales boom has been attributed to the Government’s halving of sales tax on small, fuel efficient cars.

One of the beneficiencies of the sales boom has been General Motors’ Chinese subsidiary whose monthly sales were 50 percent higher than last year.

Results such as this have led to speculation that Chinese car companies are seeking to take over Western car manufacturers at current bargain prices. Chinese manufacturers have tried to dampen this speculation by issuing official denials that they are bidding to buy Ford’s Volvo and General Motor’s Saab divisions. However, Chinese companies have already purchaseed the Australian gearbox manufacturer, Drivetrain Systems, and the French diesel engine manufacturer, Moteurs Baudouin  Meanwhile, the Indian Tata Motors has acquired Jaguar and Land Rover.