Hong Kong retail sales jump 12.8% in March on back of higher car sales

Retail sales reached HK$33.9 billion as buyers raced to make deals before first registration tax concessions for electric cars ended

Hong Kong’s retail sales jumped by 12.8 per cent in March, bringing first-quarter growth to 9.8 per cent, driven by a spurt in sales of electric cars ahead of the withdrawal of tax breaks.

Provisional figures released by the Census and Statistics Department on Wednesday showed that retail sales reached HK$33.9 billion (US$4.32 billion) in March.

The March increase was largely fuelled by car sales as buyers raced to make deals before the first registration tax concessions for electric cars ended at the close of the month.

A government spokesman said retail sales continued to strengthen.

“Looking ahead, the near-term outlook for retail sales is broadly positive, underpinned by recovering local demand, sustained growth in inbound tourism, and a favourable macro-financial environment,” he said.

“The government will continue to monitor the downside risk arising from the evolving geopolitical tensions, for any potential implications for the consumer spending in the local market.”