China's car sales rise 6.5% in March as market rebounds

Rising income levels among China's middle class has seen a growing demand for cars in the country

China's auto market rebounded in March as car sales rose by 6.5%, compared with the same month a year ago.

New passenger car sales stood at 1.35m, according to the latest data by the China Association of Automobile Manufacturers (CAAM).

That marks a 39% jump from the previous month. The numbers were being closely watched, after sales in February grew at the slowest pace in two years.

China overtook the US in 2009 to become the world's biggest auto market.

Car sales for the first three months of the year grew by 9.1%, compared with the first quarter last year.

The rebound in the sector was led by Toyota. The world's biggest car manufacturer saw sales surge by 37.4% in March, from the same time a year ago.

However, rival Japanese car makers Mazda and Honda reported a slide in their sales.

Chinese car manufacturer BYD, which is backed by billionaire investor Warren Buffett, also reported a fall in its sales numbers, despite announcing a massive price cut earlier in the year.