Toyota Motor Corp.'s China sales rose 6.3 percent year on year in February to 65,400 vehicles as Japan's biggest automaker continued to benefit from a reduced sales tax on small cars.
Honda Motor Co.'s deliveries fell 7.8 percent to 57,370 vehicles -- perhaps a sign that the big month-to-month gains that it enjoyed last year might be over.
In the first two months of the year, Toyota's sales jumped 22 percent to 190,500 vehicles while Honda's deliveries rose 9.0 percent to 164,727 vehicles.
In China, combined deliveries for the first two months are considered a more reliable indicator because it eliminates the effect of the week-long Lunar New Year holiday on sales.
Last year, Toyota sold 1.2 million vehicles in China, up 8.7 percent. Now the automaker, which has been cautious about adding capacity in China, is expanding output.
This year, the company will expand one of three assembly plants that its joint venture, FAW Toyota Motor Co., operates in the north China port city of Tianjin.
With the expansion, Toyota's two joint ventures will have the capacity to build 1.13 million vehicles a year in China, up from 1.03 million.
Source:Automotive News China