China's car market seems to be on a roll as the sales of passenger vehicles climbed for the eighth consecutive month in October.  Chinese consumers rushed to buy especially small-engine cars to cash in on tax cuts that are due to expiry by the end of the year.

Data provided by China Passenger Car Association showed that retail sales of cars, sports utility, and multipurpose vehicles in China increased by 20 percent to 2.22 million units last month. The data also showed that the deliveries of cars climbed by 15 percent to clock 18.7 million units during the first 10 months of 2016.

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Both Chinese and foreign car manufacturers benefitted from robust sales witnessed in China's car market last month. Local players such as Geely Automobile and Great Wall saw an increase in the sales of their popular SUV models like the Boyue and H6.     

Data showed that Geely doubled the deliveries of its cars to 96,158 units last month, while Great Wall posted a nearly 31 percent surge to clock 104,844 units. Other local car companies such as Guangzhou Automobile and Chongqing Changan Automobile also a witnessed robust growth in their sales, with a 33 percent and 20 percent growth respectively.

As for foreign companies, General Motors saw a marginal increase of 5.7 percent in its sales, and Ford Motor's sales picked up by about 14 percent. But it was Japanese car makers that made most from October sales in China, with Nissan Motors posting a 16 percent increase in its sales and Honda Motor reporting a 40 percent increase in sales.

"Auto production was expected to accelerate in the fourth quarter in anticipation of an eleventh-hour sales surge as buyers rush to beat the tax cut's expiration at year-end," Steve Man, a Hong Kong-based analyst at Bloomberg Intelligence, wrote in a note. "Pricing in the passenger vehicle market in China is increasingly competitive. It appears the automakers are resorting to incentives to generate sales."

Since China is the largest car market in the world and continues to grow amid the slowdown, most auto companies are leaving no stone unturned to make a dent in the country's lucrative automobile sector.  

TagsChina Car Market, Chinese Car Manufacterer, china Automobile companies, china, China automotive industry