China overtakes US as world's biggest car market in 2009

China has overtaken the USA in terms of vehicle sales for the first time ever, according to figures released for the first half of 2009.

On the back of strong sales in the month of June, which itself was up 36.5%, China's total vehicle sales for the first half of the year stood at 6.1 million, up 17.7% from a year earlier despite the harsh economic conditions.

In contrast, the USA only shifted 4.8 million units, with May the only month where the US outsold China. At this rate, the US is on track to reach an annual total of less than 10 million units while China is set to reach more than 12 million.

China is not immune from the global economic crisis though, as sales weakened in late 2008 and the government responded with a stimulus package with sales tax cuts, subsidies to trade in older cars and other incentives.

China has now become one of the most important markets for automakers as the rising demand is making up for the global slump in other markets. General Motors, for example, is experiencing a 38% rise in sales in China over the previous year, while its U.S. operations have gone bankrupt.