Anchor: Statistics from the China Association of Automobile Manufacturers show the country's auto industry began to rebound in February, after seven months of consecutive falling in both sales and output since last July. Following the government's announcement of the financial bailout to the auto industry, China's car producers and traders are looking forward to the market warming up in spring.

Our reporter Wang Ling has more.

Reporter: China's auto output and sales figures for February both rose more than 20% year on year. With sales mounting to 820 thousand units in that month alone, the inventory level of the auto industry came to its lowest point in the last two years. Su Hui is president of the Beijing Asian Games Village auto market, one of the biggest auto retailers in the capital city.

"The sales have climbed since the government released the stimulus plan for the auto industry, such as to reduce the purchase tax on cars of low emission. Consumers are attracted back to the market by the low cost, new products and policy support. In the first quarter, most auto markets across the country have seen growth; and I think auto sales in Beijing are even better."

Figures from China's Association of Automobile Manufacturers also show that in January the country's vehicle sales surpassed those in the United States for the first time, which means China is moving closer to being the world biggest auto market. Cui Dongshu from the National Passenger Car Information Exchange Association explains.

"The government's stimulus plan has brightened consumers expectations. It is natural that consumption boomed around the holiday break, say in this January with Chinese New Year. Yet it is not often seen that the sales could continue to grow after the holiday until to the second month. So I believe potential of growth remains on the market."

With China's ascent in the global auto market, international auto giants are eager to take up a share of the vast potential consumer market. World-class trademarks like Volvo, BMW and Audi are all gearing up their localization of products to meet the demands of Chinese consumers.

The government's latest policy of offering subsidies to rural car buyers also helps the auto consumption power-on. Su Hui again.

"With this policy, many rural consumers are attracted to the auto market. We have seen an immediate increase of inquiries from rural shoppers. Making up 60% of the country's total population, the rural residents will take a large share of consumption auto products."

Some insiders say consumer reluctance was the major reason for the downturn of China's auto industry over the last year. With the government's stimulus plan, the auto industry is hopeful to see the prospect brighten up.

Wang Ling, CRI news.