...Sales Growth to Resume: Fitch Ratings expects auto sales growth in China to resume at the mid-single-digit level in 2016 ¡ after having stagnated since 2Q15 ¡ supported by reduced taxes on certain vehicle purchases, recovering consumer confidence and low base effect. Spotlight on SUVs: SUVs will continue to lead sales growth in 2016 as customer preference shifts towards larger vehicles. SUV sales had risen by 48% yoy by October 2015 (FY14: 36%), accounting for 29% of passenger vehicle (PV) sales. Most auto makers have ramped up their SUV products offerings to capture this fast-growing and higher-margin segment. Smaller Cars, Lower-Tier Cities: Fitch believes strong demand in lower-tier cities have become the major driver of domestic auto sales growth, and expects the trend to continue in 2016. Growth in first-tier cities would inevitably slow down as penetration nears the developed countries' level. Smaller cars, in particular smaller and cheaper SUVs with lower specifications, can meet...
