China's auto sales surged past the US to reach record levels in 2009, industry figures showed yesterday, underscoring China's importance to the global auto industry as the world's biggest market.

The figures came as PSA Peugeot Citroen of France said markets were expected to show signs of recovery around the world in 2010, while Volkswagen AG said it aims to at least double its US sales in coming years.

After a year in which Chinese automakers made key acquisitions abroad, Beijing's renewed incentives to bolster demand will likely keep it as a bright spot for car makers battered by the financial crisis.

Vehicle sales in the country came to a record 13.6 million units last year, the China Association of Automobile Manufacturers said, well above a previous target of 10 million units and compared with annual sales of 10.4 million cars and light trucks in the US, the lowest level in 27 years.

The Chinese tally, which also includes heavy vehicles, is still higher than that of the United States after deducting roughly 650,000 units of heavy trucks, Orient Securities said. "Sales have been extremely hot in most parts of last year with little seasonal changes. Many people have to wait for weeks or even months to get their cars," said Qin Xuwen, an analyst at Orient.

The past year has seen Chinese automakers venturing on to the global stage for the first time in a major way, ready to snap up brands such as Volvo and Hummer which they previously admired from afar.

Peugeot said Europe would miss out on any global upturn, forecasting a one-digit percentage decline as state-funded scrappage schemes are removed or phased out.

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