China car sales growth slows in July

SHANGHAI -- Car sales in China, the world's second-largest vehicle market, rose at their slowest annual pace this year in July as tax measures and higher petrol prices hit sales of sport utility vehicles in particular.

Car sales rose 5.39 percent from a year earlier to 332,600 units, according to data provided by the China Association of Automobile Manufacturers on Tuesday. Sales rose 5.82 percent in June.

Sales of SUVs plunged 19.69 percent to 14,700 units after Beijing raised retail gasoline prices by 9.6 percent in May. Increased consumption taxes for vehicles with larger engines also dampened demand.

In 2005, car sales in China surged 21.4 percent to 3.97 million units.

Tags: Sales Asia China

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