Car sales in China fell for the third month so far this year in November, data released this week shows.

The China Association of Automobile Manufacturers reported a 10.3% fall in passenger car sales to 522,800 units in November. That followed two earlier drops in August and September.

Output will reach 9.6m vehicles this year, according to the Chinese government.

Xu Changming, director of the information resources department of the State Information Centre, said that 9.6m was lower than the 10.23m predicted at the beginning of this year.

Xu said this year, the domestic market demand will reach 9.2m vehicles compared to 8.42m in 2007, with growth ranging between 7% and 8%.

In mid-November Xu warned that the financial crisis gripping the global economy would impact the Chinese car industry.

He told a forum at the Guangzhou motor show that China's local car manufacturing industry would face its toughest challenge in coming months as the 'financial tsunami' arrived.

''The appreciation of the yuan, rising raw material cost and the global economy downturn will weaken the overseas consumption markets,'' Xu said.

''The coming few months will be worse for the industry.''

Auto market intelligence
from just-auto

• Auto component fitment forecasts
• OEM & tier 1 profiles & factory finder
• Analysis of 30+ auto technologies & more