China July car sales see 2-year slowest growth

China's passenger-car sales rose 6.8 percent in July, the slowest pace in two years, as rising fuel prices damped demand and people delayed purchases ahead of this month's Beijing Olympics.

Sales of passenger cars, sport utility vehicles and multipurpose vehicles totaled 488,200, the China Association of Automobile Manufacturers said in an e-mailed statement today. In the first seven months, sales rose 16 percent to 4.1 million.

Car sales in Asia's largest auto market slowed after Beijing banned 50 percent of vehicles from entering the city for about two months to cut pollution during the Olympics. The central government also raised fuel prices in June to damp economic growth, cut oil usage and curb pollution.

"Especially in the host cities, people won't buy cars until the Olympics end,'' said Tang Jun, an analyst with Guangfa Securities Co. in Guangzhou. "Automakers are also facing rising stockpiles and the situation won't ease before September at the earliest.''

China's stockpile of unsold new vehicles rose about 50 percent in the six months ended June, hitting a four-year high. The country's auto export growth has also slowed this year, stoking concerns about overcapacity.

Overseas automakers, including General Motors Corp. and Toyota Motor Corp., have invested at least $20 billion in China in a bid to offset slumping demand in the U.S., Japan and Europe.

Following is a table of China's 10 bestselling cars in the first seven months, the sales total and the manufacturer.

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No. Model          Sales      Automaker
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1.  Santana        129,355    Shanghai Volkswagen Co.
2.  Jetta               126,996    FAW-Volkswagen Automotive Co.
3.  Excelle           104,548   Shanghai General Motors Co.
4.  Corolla           98,793     Tianjin FAW Toyota Motor Co.
5.  Accord            90,881     Guangzhou Honda Automobile Co.
6.  Camry            88,440     Guangzhou Toyota Motor Co.
7.  QQ                  85,471     Chery Automobile Co.
8.  Elantra           75,113      Beijing Hyundai Motor Co.
9.  Xiali                72,630      Tianjin FAW Xiali Automobile Co.
10. Focus           72,228      Changan Ford Mazda Automobile Co.
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Source: China Association of Automobile Manufacturers