Car sales in China in August rose 7.3% year on year to 1.1m units, the official China Association of Automobile Manufacturers (CAAM) said.

The July rise was 6.7% to 1.01m, according to CAAM.

Reuters noted that sales declined in May for the first time, off 0.1%, but have since stabilised.

The slowing has been attributed to the termination of government tax incentives and local government initiatives aimed at easing ever-worsening traffic congestion.

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