BMW says that its sales in the Chinese market are slowing, in a revelation that may unsettle some of the US automotive heavyweights eyeing up the territory.

The German car manufacturer said that sales for the first ten months of the year have slowed, growing at a rate of 11 per cent after a first-half leap of 56 per cent.

General Motors and DaimlerChrysler are among the automotive giants planning to expand in China, with many analysts identifying it as a key driver for the industry in the next decade.

The latest figures, however, have prompted some analysts to counsel caution, as Lin Zhongbing, an analyst at China Merchants Securities, told Bloomberg.

"People are holding back from purchases in anticipation of cheap imports,' he argued, adding that it could be a sign of the market settling down.

Reports in China Daily quote figures from the National Car Makers Association which suggest passenger car sales fell 16.5 per cent in October in comparison to statistics for 2003.

Nevertheless, BMW chief executive Helmut Panke remains optimistic, stressing that the naysayers "should not overestimate the current situation in China".

Pointing to the figures, he underlined his belief that China "is still the biggest growth market in the world".