CHINA’S car sales increased for a second straight month in August, raising optimism that a two-year slump in the world’s biggest market is over.

Retail sales of sedans, SUVs, minivans and multipurpose vehicles increased 8.8 percent last month from a year earlier to 1.73 million units, the China Passenger Car Association said late Tuesday. That follows a 7.9 percent gain in July.

Showrooms and malls have reopened as the coronavirus pandemic eases in China, a boon for everyone from market leader Volkswagen to electric car manufacturers Tesla Inc. and BYD Co.

Japanese and German brands are set to benefit from some customers trading up as the economy gradually improves, according to Bloomberg Intelligence. Toyota Motor Corp. reported a 27 percent increase in China sales for August, while sales by Volkswagen rose 4.7 percent in July. SAIC Motor Corp., the biggest Chinese carmaker, posted a 3.6 percent gain for last month.

First Automotive Works (FAW) Group Co., China’s leading automaker, sold 314,454 vehicles in August, up 14 percent year on year, according to the company.

Its iconic sedan brand Hongqi sold 21,020 vehicles last month, an increase of 109.8 percent year on year. The group’s joint ventures FAW-Volkswagen and FAW Toyota also reported sales growth.(SD-Agencies)