China’s auto sales rose 6.7% in July 2011

China’s auto sales rose 6.7% in July 2011 but growth was well below the double-digit surge of the past two years.

Around 1.01 million passenger cars were bought in July in the world’s biggest auto market by vehicle sales, according to the government-authorized China Association of Automobile Manufacturers. Total sales of commercial and passenger vehicles rose 2.2% from a year ago to 1.3 million units.

China’s auto sales soared in 2009 and 2010, driven by subsidies and tax cuts meant to help the industry rebound from the global crisis. Sales rose 32% last year to 18 million vehicles. But that growth has faded due to the end of incentives, higher fuel prices and efforts by some cities to curb pollution and traffic congestion by restricting ownership.

In May 2011, passenger vehicle sales fell for the first time in two years, declining nearly 9% from the same month last year. The slowdown could be a setback for global automakers looking to China to drive sales amid weak demand in the United States and Europe.