Despite gloomy international sales, whether in Western countries or emerging economies, the still-robust Chinese auto¹ market currently offers the brightest prospects² for global automobile³ manufacturers to offset⁴ their losses at home.

China has been the first to show improvement from the devastating⁵ industry downturn that began in second half of last year as it benefits from a series of government incentives⁶ to boost auto consumption.

China halved⁷ retail⁸ taxes on small cars this year and plans to supply 5 billion yuan for vehicle subsidies⁹ in rural areas to drive auto sales after growth rose at the slowest pace in a decade last year, when 9.38 million units were sold, an increase of 6.7 percent over 2007.

The stimulus¹⁰ package was felt in the first quarter, when domestic sales surpassed the waning¹¹ US market for three months in a row, giving China the temporary title of top auto market in the world.

The country even reached a monthly sales record of 1.11 million vehicles in March, 34.1 percent more than in February, and a 5 percent year-on-year increase.

That compares with a plummet¹² of more than 30 percent in US for the period, when 2.2 million vehicles were sold.

"China's auto sales in 2009 may break the 10-million barrier and overtake the US as the world's largest automobile market for the entire year," noted¹³ Mei Songlin, deputy general manager of J.D. Power Asia-Pacific.

The growth in China provides global automakers the confidence to further develop and invest in China in a big way.

Questions:

1. What was the reason for the continuing growth of the Chinese auto market?

2. What was of interest comparing the US and Chinese auto market for the Q1?

3. Which barrier stands the possibility of being broken this year in terms of Chinese auto sales?

Answers:

1. A series of government incentives that boosted auto consumption.

2. Chinese sales surpassed the US market for three months in a row, giving China the temporary title of top auto market in the world.

3. The 10 million barrier.