China auto sales jump 25% in February

This was a small story that grabbed my attention today. Amidst all the talk about crude inventories increasing by 700,000 in the US and shipments of crude to China dropping over last year, this is the one that intrigues me the most.

In February China sold 827,600 units in comparison to 688,909 in the US. They sold 735,000 in January. The trend is showing even higher sales expected in March. Why is this?

Part of China's latest initiatives is to provide subsidies to farmers to purchase vehicles as well as cutting sales taxes on small engine passenger vehicles that are more fuel efficient, especially in the country side.

These types of numbers will not have an immediate and direct impact on the price of crude, but as more and more Chinese start to take to the roads, the inevitable will be an increased demand on oil.

This will be an interesting stat to watch.