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Auto sales climb 55%

SHANGHAI (AP) — China's passenger car sales climbed 55 percent from a year earlier in February, despite a long national holiday, on strong demand for smaller cars and sport utility vehicles, an industry group reported yesterday.

Sales of cars, commercial vehicles and SUVs rose to 942,900 units, while sales of all vehicles including trucks and buses rose 46 percent year-on-year to 1.21 million, according to the government-affiliated China Association of Automobile Manufacturers.

Unlike the US, China's auto industry does not release monthly sales data adjusted for annual rates. US auto sales rose 13 percent from a year earlier to an annualised rate of 10.4 million, according to Autodata Corp.

Tax cuts and subsidies for small-car purchases pushed demand sharply higher last year, with total vehicle sales leaping 45 percent to 13.6 million, making China the world's biggest auto market, as American car sales languished.