China auto sales slow again

Automobile sales in China slowed in July, one month after the China Association of Automobile Manufacturers (CAAM) reduced its full-year sales forecast for 2011, Dow Jones reported. Continued weakness in the sector, which contributed 10.2% of China’s GDP last year, could increase concerns about a wider slowdown in the Chinese economy. Total automobile sales in China – including both commercial and passenger vehicles – were up 2.2% year-on-year to 1.28 million units, but declined 11.1% from last month.  Sales of passenger vehicles were up 6.7% yoy, but down 9% month-on-month. Dong Yang, CAAM’s secretary-general, attributed the slowdown to tightening macroeconomic controls and the end of government subsidy programs for passenger vehicle purchases.