Chinese sales of passenger vehicles rose in September to reverse five months of declines as consumer sentiment improved and the government enacted stimulus policies. Retail sales of passenger vehicles advanced 4.

China’s passenger-vehicle sales rose in September, reversing five months of declines thanks to supportive government policies and improving consumer sentiment.

China's government announced in July a subsidy of more than $2,800 when consumers scrap an older car to replace it with an EV, doubling a subsidy introduced in April. The subsidy for a more fuel-efficient combustion vehicle is just over $2,100.

General Motors Co. sold more electric vehicles and plug-in hybrids than conventional gasoline cars in China for the first time last quarter, though the milestone comes as total deliveries continue to fall.

Big taxes will be imposed on imports of electric vehicles from China to the EU after the majority of member states backed the plans. The move to introduce tariffs aims to protect the European car industry from being undermined by what EU politicians believe are unfair Chinese-state subsidies on its own cars.

China's car sales rose 4.3 percent in September after five straight months of decline, helped mainly by a government subsidy to try to stimulate car owners to trade in their vehicles, which is part of a larger stimulus package to shore up the economy.