Passenger car sector growth slows

China's passenger car market is slowing faster than expected, as a result of a fuel price hike, the slowing economy and the rising vehicle purchase tax. It reported the slowest annual growth rate in two years in July.

The sector has maintained a high level of growth of between 20 and 30 percent annually since 2005 and consequently China has been seen as the most important market for global auto conglomerates.

However, statistics from China Association of Automobile Manufacturers (CAAM) revealed that last month, sales of sedans, multipurpose vehicles and sport utility vehicles in China climbed 6.79 percent from a year earlier, the smallest monthly gain and the first single-digit rise in two years.