Shanghai - Arabstoday
China\'s vehicle sales will likely accelerate next year, supported by economic growth and strong demand from first-time buyers, according to the country\'s automakers group. Deliveries may rise 10 per cent in 2012 compared with the less than 5 per cent growth projected for this year, Dong Yang, secretary-general of the China Association of Automobile Manufacturers, told reporters in Shanghai. \"Car ownership in China is still low versus developed economies,\" Dong said. \"Every motorcycle rider has a dream. They always hope they will go to sleep one day and wake up the next morning to find their two wheels have become four.\" Subsidies Vehicle sales have slowed in China this year after the government reinstated a 10 per cent sales tax on small cars and phased out subsidies for trade-ins in rural areas. Demand was also affected by rising borrowing costs, after the People\'s Bank of China raised interest rates five times in the past 12 months and ordered lenders to set aside a record amount as reserves to tackle inflation.