China's 2015 light-vehicle deliveries rose 7.3 percent year on year to 21.1 million cars and trucks, thanks to a late sales surge triggered by the government's purchase tax cut on small cars, reported the China Association of Automobile Manufacturers.

 

In December, light-vehicle sales in China surged 18 percent from a year earlier to 2.44 million, according to the association.

 

Last summer, industry sales slumped due to the slowing economy and a midyear stock market rout. That rout resulted in lost sales of half a million vehicles, according to the association's estimates. Car purchase limits put in place in seven major cities erased another 2 million potential deliveries.

 

But in the last three months of the year, automakers enjoyed strong sales triggered by the 50 percent tax cut on vehicles with engine displacements of 1.6 liters and smaller that took effect on Oct.1. The tax cut expires at the end of this year.

 

The tax incentive gave an additional boost to compact crossovers, which already were in great demand. Last year, sales of SUVs and crossovers jumped 52 percent to 6.22 million.

 

Meanwhile, deliveries of multipurpose vehicles increased 10 percent to 2.11 million.

 

But demand for compact sedans and microvans declined as car buyers migrated to crossovers and MPVs. For the year, sedan sales dropped 5.3 percent to 11.72 million, while microvan sales slumped nearly 18 percent to 1.10 million.

 

Sales of commercial trucks and buses remained sluggish last year, dropping 9 percent from a year earlier to 3.45 million.

 

China's total vehicle sales -- including passenger vehicles, trucks and buses -- reached 24.61 million, up 4.7 percent from a year earlier.

 

The association expected China's auto sales to increase 6 percent this year thanks to the tax incentive. It didn't provide a forecast for light-vehicle sales this year.