Sales of motor vehicles in China reached 3.28 million from January to August this year, including 1.51 million cars, according to the latest statistics, Asia Pulse reported.

Sales in August were 380,000 units, including 170,000 cars, maintaining the same level of that of the previous month, according to Shen Ningwu, deputy general secretary of the China Association of Auto Manufacturers.

Shen said that cancelling import quota control on auto products, and lowering the tariff rate have exerted a big impact on China’s auto market this year.

China will lower its tariff on imported complete vehicles to 25% by July 1, 2006, and that of automotive parts to 10%.

Some experts forecast that production and sales of motor vehicles will slow down this year. They noted that the government’s macro control policy has also affected vehicle sales.

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Tightening credit policy, oil price rises and traffic jams are other factors causing the slowdown in sales.

However, Shen is confident that sales of motor vehicles will exceed five million in 2004 despite the unfavourable situation. He holds that China’s automotive industry is now in a stage of readjustment, expecting about 20% growth this year, Asia Pulse said.