Demand for passenger vehicles in China continues to accelerate, with year-over-year sales growing 104% in November to 1 million units, according to the China Assn. of Automobile Manufacturers. Production soared 101% to 1.08 million units.

CAAM says total vehicle sales-including commercial trucks-grew 9% through the first 11 months to 12 million units. The increase is attributed to tax rebates and other economic incentives launched by the central government earlier this year. Results also compare to below-normal sales a year ago when the global recession began.

The best-selling model in China last month was BYD Auto’s F3 compact sedan. The company, which says it is readying electric versions of the vehicle for launch in the U.S. and other markets next year, delivered 32,000 of the conventionally powered models last month in China.

India’s new-car market surged to 133,700 units in November, up 61% from the same month in 2008, reports the Society of Indian Automobile Manufacturers (SIAM). That’s the sharpest year-over-year monthly gain since a 73% rise in February 2004, according to the industry group.

Sales of trucks and buses jumped 98% in November from a year earlier to 40,800, while motorcycle and scooter sales rose 39% to 790,600.

All but one of India’s car makers enjoyed higher sales in November. The exception was Mahindra Renault Ltd., maker of the Logan sedan, whose sales slipped 7% to just 279 cars.

Market-leader Maruti Suzuki, which is majority owned by Suzuki Motor Corp., climbed 57% to 67,800 cars during the month. Other big gainers were Hyundai (93%), Tata (48%) and General Motors (55%).

In August, SIAM forecast that passenger car sales in India would grow at least 10% for the fiscal year ending next March. Automakers sold 1.22 million vehicles in the most recent fiscal year. The government previously has predicted annual car sales would reach 3 million units by 2015.

Last month’s sales surge reflects the stimulus package enacted by the government earlier this year. India’s car sales fell 19% in November 2008 vs. 2007 levels, SIAM says. In addition to tax cuts, the new vehicle market has benefited from rate cuts by banks and the launch of several new vehicles. India’s economy expanded by 7.9% for the fiscal quarter ending in September, the fastest pace in 18 months.

China’s Beijing Automotive Industry Holding Co. has reached a preliminary agreement with General Motors Co. to acquire certain assets of Saab Automobile, including technologies and production equipment related to the Swedish brand’s 9-3 and 9-5 cars, according to several media reports. Earlier reports this month indicated only that BAIC was set to purchase the tooling for the current model 9-5 sedan.

Separately, Spyker Cars NV tells Reuters it remains in negotiations with GM to acquire the Saab brand. Bloomberg News says officials for the Dutch supercar builder met with GM in Zurich over the weekend and are moving closer to a deal, which would team Spyker with Russia’s RMC Convers Group. The latter is owned by Spyker Chairman Vladimir Antonov, a billionaire banking mogul.

Last year Spyker, which has roots dating to 1875, sold 43 of its luxury cars at prices starting at $300,000. But it hasn’t posted a profit since its initial public offering in 2004.

GM reopened negotiations to sell Saab after a deal with Sweden’s Koenigsegg Group AB collapsed. BAIC had planned to acquire a stake in Koenigsegg in conjunction with that sale, primarily to gain access to Saab’s technology.

GM has said it will decide by the end of this month whether to sell or kill Saab altogether. Today’s Wall Street Journal says one other bidder, investor Ira Rennert’s Renco Inc., also may still be in the hunt. The Journal says Wyoming-based Merbanco LLC, founded by merchant banker Christopher Johnston, has dropped out. Another media report lists China’s SAIC Motor Corp. as a possible bidder.

The deal with BAIC, inked over the weekend in Sweden, will enable the Chinese automaker to use Saab technology-including engines and transmissions-in its own vehicles, the Journal says. GM declined to comment on the report over the weekend, but the newspaper says a formal announcement is likely soon. It notes that BAIC has a $2.9 billion line of credit with Bank of China that could be used to help finance an acquisition.

The Journal says BAIC President Wang Dazong and other company officials are still in Sweden talking with GM about additional deals involving Saab. But the newspaper says BAIC is not interested in buying Saab’s headquarters or Trollhattan assembly plant.

Sales of new cars in Russia plunged 46% to 105,300 units in November vs. the same period in 2008, according to the Assn. of European Businesses. The group says vehicle sales in Russia from January through November were 1.35 million, about half the total posted a year earlier. Last month’s decline was a slight improvement over October’s 52% year-over-year slide.

David Thomas, the chairman of AEB’s auto manufacturer’s committee, is urging the Russian government to develop and publicly detail a comprehensive plan to help the country’s struggling auto industry, Reuters reports.

Ford Motor Co. hopes to accelerate sales growth in China by altering the structure of its three-way Changan Ford Mazda joint venture in China, reports the Detroit Free Press.

Joe Hinrichs, who became Ford’s president for Asia Pacific and Africa this month, tells the newspaper the company wants to make unspecified moves to help improve its 2% market share in China.

Ford currently owns 35% of the venture, with Chongqing Changan Automobile holding 50% and Mazda controlling 15%. Ford, which reduced its ownership of Mazda from 33% to 11% last year, recently said it would no longer collaborate with the Japanese company on small-car development.

Changan Ford Mazda expects its sales to jump 50% to 320,000 units this year, with Ford accounting for 70% of the volume. The venture plans to open a third plant in 2012 that will increase annual capacity by 150,000 units to 600,000 vehicles.

Last week’s partnership agreement between Volkswagen AG and Suzuki Motor Corp. is expected to help both companies grow in emerging markets such as China and India. The proposed equity swap to be completed in January will give VW a 19.9% stake in Suzuki and Suzuki a 2.5% stake in VW.

The two companies plan to coordinate efforts over a broad range of product development and purchasing activities. In addition, Volkswagen aims to tap into Suzuki’s compact car expertise. Suzuki is the second-leading maker of 660-cc minicars in Japan behind Toyota Motor Corp.’s Daihatsu unit. In India, the Japanese company’s Maruti Suzuki India Ltd. joint venture controls 50% of the market, thanks mainly to its small-car dominance.

VW, which aims to capture 10% of the India market, sold fewer than 1,600 vehicles there last year and is on track to nearly double that volume this year. The Pune plant, which came online earlier this year, will have the capacity to build 110,000 cars. VW, which makes the Jetta and Passat cars at Skoda’s Aurangabad factory in Maharashtra state, currently sells 16 models under its various brands in India.

Jochem Heizmann, member of the board of management at Volkswagen AG, says the company is evaluating adding a new entry-level hatchback in India below the current Polo. The company also aims to increase sourcing from local vendors to more than 50% vs. just 15% today. The new vehicle is expected to be priced between $4,300 and $5,400.

Suzuki, meanwhile, hopes to tap into VW’s experience with diesel engines and hybrid/electric powertrains. It also plans to reinvest some of the $2.5 billion it will receive from VW into research and development.

Suzuki has been looking for a partner since General Motors Corp sold the last of its 20% stake in the company last year. Observers say Suzuki will probably phase out its current ventures with Fiat and Nissan to focus on programs with VW.

Truckmaker Mitsubishi Fuso Truck & Bus Corp. is selling its plant in Thailand to Singaporean automaker Tan Chong International Ltd., which will take over production of Mitsubishi Fuso’s Canter small truck and Super Great large truck at the Thai factory next month. Terms weren’t disclosed.

The new outsourcing arrangement is expected to save money for cash-strapped Mitsubishi Fuso. If it hadn’t found a buyer, the truckmaker likely would have been forced to close the Thai plant, which produced 1,500 vehicles last year.

Toyota Motor Corp. plans to unveil a concept version of its upcoming Entry Family Car, which will be slotted below the Yaris, at India’s auto expo next month in New Delhi. Hatchback and sedan variants are expected to be shown.

Production is due to begin in India late next year, followed by output in Brazil, Russia and other emerging markets. There are no immediate plans to introduce the new entry-level vehicle to the U.S.

Year-over-year sales of new cars rocketed 132% last month in Vietnam to 12,300 units, reports the Vietnam Automobile Manufacturers Association (VAMA). This follows a 103% gain in October vs. the same period last year.

Sales through the first 11 months of the year were 104,400 units, up just 2% from the same period last year, VAMA says. The group attributes the recent uptick in part to tax cuts related to vehicle purchase and ownership. VAMA had asked for an extension of the more favorable tax rates, which are currently scheduled to expire at the end of this month.

Market-leader Toyota Motor Corp paced the November gain with sales of nearly 3,500 cars, up 135% from the same month last year. For the year, Toyota has fared better than the rest of the industry in Vietnam with sales growing 19% to some 25,900 cars.

India’s Mahindra & Mahindra Ltd. plans to consolidate its components businesses into a single unit under its Systech business over the next two years.

The move, which is designed to cut costs, would bring together Mahindra group companies involved in castings, composites, forgings, gearing and other activities. The company’s steel operations also may be included.

Some of the affiliates currently have their own stock listings. Mahindra is expected to acquire as much as 60% of the combined venture.

Hyundai Motor Co. and its Kia Motors Corp. affiliate plan to expand their annual vehicle capacity in China to 930,000 units next year and to 1.24 million in three years, The Wall Street Journal reports. The companies currently have four plants with a combined annual capacity of 775,000 vehicles.

Next year’s increase in output will come from expanding current operations. But getting to 1.24 million units will require opening a fifth plant in China, according to the Journal. It notes that demand for Hyundai and Kia vehicles in China has jumped 80% and 55%, respectively, this year, and Hyundai-Kia has captured 9.9% of the market, up from 8.1% a year earlier.