New figures released by the China Association of Automobile Manufacturers reveal that automobile sales in China jumped by 31.6 per cent to 1.13 million units during the first half of 2004.

However, according to Reuters, growth slowed over the six months, as the Chinese government moved to calm the economy by restricting car finance plans and increasing oil prices.

In a sign that these measures may by working, second-quarter growth across the whole economy equalled 9.6 per cent - much lower than predicted.

Additionally, car sales in June slipped by 5.8 per cent compared to May to 167,282 units. Industry analysts are now expecting yearly growth in car sales of just 10-20 per cent.

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