China’s domestic car market reached sales of 3.3m passenger vehicles from January to June, up 14.2% from the corresponding period of last year but lower than earlier expectations of growth of 20%, according to statement by the China Passenger Car Association (CPCA).

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Tighter government monetary policies, as well as record high oil prices are reportedly the contributing factors to the slower growth.


Rao Da, secretary general of CPCA, also attributed the slowdown to floods in South China that hindered production of some carmakers and resulted in suspension of vehicle shipments.


China raised prices of gasoline and diesel by 18% at the end of June.

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