SHANGHAI - SALES of vehicles in China rose about eight per cent to 9.4 million units in 2008, less than half the growth rate for the previous year, state media reported on Monday, citing an industry group.

Demand for vehicles has been hit by the global economic slowdown, and the outlook for 2009 remains gloomy, the People's Daily reported, citing Mr Hu Maoyuan, chairman of the China Association of Automobile Manufacturers.

The sales growth rate for 2008 followed an expansion of 21.8 per cent in 2007 over the previous year, according to earlier reports.

'In 2008, China's automobile market has slowed down its pace amid the global financial crisis,' Mr Hu, who is also chairman of China's top auto maker Shanghai Automotive Industry Corporation, was quoted as saying.

'It is foreseeable that China's auto market will remain in a cyclical downturn trend in 2009. We hope things would get better in the second half,' he said.

For the first 11 months of the year, vehicle sales rose 8.5 per cent from a year earlier to 8.6 million units. In November alone, auto sales fell 14.6 per cent year on year.

State media has reported China will announce stimulus measures in the first quarter to keep its slowing auto sector growing at about 10 per cent annually during the global economic slowdown. -- AFP