OREANDA-NEWS. China's car sales growth continued to slow sharply in May, amid contracting demand for sedans and crossover vehicles. India's car sales extended their rise, while Japan's automobile sales fell.

China's car sales rose by 1pc in May to 1.61mn, according to the country's association of automobile manufacturers. This was down from a 6.4pc growth rate in the first five months of the year and around 10pc growth for all of 2014. Total automobile sales of 1.91mn in May fell by 0.4pc from the same period last year.

Sales of sedans fell by 10pc in May to 907,000. Demand for crossover vehicles fell by more than 22pc to 102,500. But demand for sports utility vehicles (SUVs) remained strong, with sales climbing by 44pc in May to 45,930.

China-brand cars accounted for 39.3pc of the total market share. This was up by 2.5 percentage points from the same period last year. German-brand vehicles had a 19.1pc share of the market, down from 21.5pc the same time a year earlier. Japanese-brand cars held a 17.9pc share, up two percentage points from the same time last year.

The fall in commercial vehicle sales slowed, although demand for trucks remained weak. Total sales fell by 8pc in May, improving from a 17pc drop in demand during the first five months of the year. While bus sales began to recover, truck sales slid by 20pc during this five-month period.

Japan's automobile sales fell in May for a ninth month out of 10, although the pace of the drop was the slowest this year. Sales fell by 7pc to 319,482. Sales of mini vehicles, or kei cars, have slumped over the last two months following a rise in the tax rate on the vehicles from April to bring it in line with other vehicles.

India's car sales rose in May for a seventh straight month, one of several signs of the country's firmer economic growth. Car sales climbed by 8pc in May to 160,067, according to the Society of Indian Automobile Manufacturers. Truck sales rose at an even faster 23pc rate. Car sales have got a lift from lower fuel and borrowing costs. The country's central bank cut interest rates this month for the third time this year.

Taiwan's car sales fell 6pc in May to 34,478. Sales fell for only the second time this year and at their fastest pace since 2013, despite the launch of aggressive sales promotions last month by the island's main vehicle makers.

Australia's automobile sales fell by 1pc in May to 93,327, according to the country's Federal Chamber of Automotive Industries. The slowdown reflected a sustained drop in passenger car sales, which have fallen by 5pc so far this year. This countered the impact of persistently strong demand for SUVs.