China's auto sales accelerated in August as an economic recovery gained strength, an industry group reported Tuesday.
Customers in the world's biggest auto market bought 1.35 million automobiles, according to the China Association of Auto Manufacturers. Sales growth accelerated to 11% from July's 10.5%.
The growth comes as other improved factory output and indicators suggest China's economy is rebounding after growth fell to a two-decade low of 7.5% in the quarter ending in June.
Global automakers are looking to China to drive sales growth. Even after a steep decline from 2009's explosive 45 per cent expansion, Chinese growth still is well above anemic U.S. and European rates.
Chinese buyers have been motivated by price cuts at many dealers and rumours some cities will tighten controls on new vehicle ownership to curb traffic and smog, according to one expert.
The Beijing city government said last week it was considering fighting congestion by charging drivers to enter the Chinese capital's central district. Other cities have imposed quotas on new vehicle registrations.
Total Chinese vehicle sales, including trucks and buses, rose 10.3% over August last year to 1.65 million units.
General Motors Co. said earlier that August sales of GM-brand vehicles by the company and its Chinese partners rose 11.2% to 245,799.
