Manufacturers expect robust demand as government incentives spur demand.
China's automakers are optimistic that tax relief for small vehicles will help the industry grow significantly in China. Carmakers have already begun ramping up production, increasing output of vehicles with 1.6 litre or smaller engines by 12% to 1.3m units in October.
Beijing halved the purchase tax to 5% on small vehicles in October and is planning to extend the cut until the end of 2016.
Vehicles with 1.6 litre or smaller engines made up 69.5% of total vehicle production, an increase of 1.8 percentage points from September, as a direct result of carmakers mobilising to take advantage of the new scheme. Some dealers have already started to report an uptick in sales, although figures around total light vehicle deliveries have not yet been tallied.
As overall growth slows, China's auto industry is under pressure to boost sales. In 2014, light vehicle deliveries rose 9.9% to 19.7m, compared to just 2.8% in the first nine months of 2015 to 14.5m units.