China auto sales growth hits the brakes in 2011

BEIJING (AFP) - Growth in China's auto sales hit the brakes in 2011, data showed on Thursday, after Beijing rolled back sales incentives and some cities imposed restrictions on car numbers.

Total sales in the world's largest auto market rose just 2.5 per cent to 18.51 million units last year, the China Association of Automobile Manufacturers said on its website, compared with an increase of more than 32 per cent in 2010.

The increase was in line with an earlier forecast by the industry group for growth of 2 to 3 per cent in 2011.

Sales of passenger vehicles - which account for the bulk of sales in China - rose 5.2 per cent to 14.5 million units in 2011, Dow Jones Newswires said, citing a statement published by the auto group.

After falling for two straight months, auto sales rebounded in December to rise 1.4 per cent from a year earlier to 1.69 million units.

Passenger vehicle sales rose 4.6 per cent to 1.37 million units last month.

China overtook the United States to become the world's top auto market in 2009 as more and more Chinese realise the middle-class dream of owning their own car.

But the sector lost steam last year after the government phased out sales incentives such as tax breaks for small-engine vehicles and Beijing slashed the number of new registrations allowed in the capital.

The southern metropolis of Guangzhou also began ordering cars off the roads, based on the last digit of their licence plate.