The sales of passenger-vehicles in China increased in the first half of the year, driven by the demand for sport-utility vehicles (SUVs), crossovers, and new-energy vehicles.

Car makers sold 10.8 million units of cars, SUVs, and multipurpose vehicles between January and June, up by 9.5 percent from a year earlier, the government-backed China Passenger Car Association reported.

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Honda Motor Corp. saw an 18 percent increase in sales to 542,527 units, Toyota Motor Corp. saw a 16 percent to 592,100 units, and Daimler AG's Mercedes-Benz saw a 32 percent to 229,137 vehicles. Altogether, the three companies outpaced last year's 8.4 percent gain.

Demand for these SUVs is anticipated to remain solid this year, as Chinese buyers are opting for more spacious vehicles after the government finally put an end to the decades-long one-child policy.

"Sales of SUVs continue to be robust as Chinese families who plan to have a second child are keen on the size and height of the car," Zhang Xin, Beijing-based Guotai Junan Securities' chief auto analyst, said. He further noted that SUVs with small engines that are highly fuel efficient are becoming a trend.

The growth of SUV sales in China accounted for 35 percent of the total passenger-vehicle sales in the first half of the year, up by eight percent from the year earlier, thanks to local carmakers who are introducing cheaper models to seduce more buyers. For the month of June, industrywide deliveries of SUV soared 19 percent to 1.7 million.

Meanwhile, electric vehicles also saw its sales double as the Chinese government hastens construction of charging areas to cater for an estimated five million electrically powered vehicles by 2020. 

TagsSUVs, china