(Yicai) Nov. 12 -- Sales of new energy vehicles in China surged almost 50 percent last month from a year earlier to set a new record high, driven by government policies, new model releases, and sustained market demand.

NEV sales hit 1.43 million units in October, according to data released yesterday by the China Association of Automobile Manufacturers. Production surged 48 percent to 1.463 million.

The government’s auto trade-in policy had a notable effect in boosting car sales last month, said Chen Shihua, the CAAM’s deputy secretary-general. Additionally, a wave of new model releases has kept the market active, with NEV sales and vehicle exports continuing to grow rapidly, he added.

The trade-in policy is part of a broader effort to spur consumer spending and upgrade China’s car fleet with lower-emission vehicles. First rolled out last year and expanded this year, it offers financial incentives to consumers who trade in older, more polluting models for new autos, particularly NEVs.

Chen noted that the combined growing impact of this and the year-end sales push by carmakers and dealers is expected to sustain vehicle demand, maintaining rising market momentum over the next two months.

China’s overall auto production and sales last month reached 2.996 million and 3.053 million, respectively, up 3.6 percent and 7 percent from a year ago. It was the first sales increase since May. Some 542,000 vehicles were exported, a 0.5 percent monthly gain and an 11.1 percent annual increase.

From January to October, production and sales reached 24.466 million and 24.624 million, respectively, up 1.9 percent and 2.7 percent on the same period of last year. NEV output and sales jumped 33 percent and nearly 40 percent to 9.779 million and 9.75 million units.

Editor: Tom Litting