Vroom vroom. Car sales, swooning in the rest of the world, leapt 49 per cent in China in June, year-on-year, fuelled by government incentives. And forget protectionism. Foreign carmakers are making hay too; General Motors’ China sales are racing ahead, while BMW and Mercedes have been approved as official cars for bureaucrats. Those late to the party are piling in: Italy’s Fiat this week signed a €400m joint agreement to make cars and engines in China. Domestic manufacturers, meantime, are still bent on acquiring overseas assets, undeterred by earlier mishaps. Beijing Automotive Industry Corporation is bidding for GM’s Opel business in Europe.

Road conditions ahead look good. Penetration in China is still minuscule, at 3 per cent of the population. Vehicle sales this year, forecast at 11m, put the country on track to overtake the US as the world’s biggest car market. Beijing has long sought to build its automotive industry, mindful of that industry’s role as a linchpin of the manufacturing prowess of the US and Japan. Regardless of the fact that it has failed to deliver a national champion, Beijing will continue to support the industry. That includes direct support: CSM worldwide, the auto consultancy, estimates 6 per cent of cars are bought by government.