News Summary: China's Aug. auto sales growth slows

AP News
Posted: Sep 10, 2012 1:36 PM

SLOWDOWN AFFECTS CARS: China's auto sales growth fell to 3.7 percent in August, to 1.23 million, from July's 11 percent rate and June's 15.8 percent, according to the China Association of Auto Manufacturers.

WHAT IT MEANS: The slowdown is a blow to a global auto industry that is looking to China to drive sales growth amid weak demand in U.S. and European markets.

BACKGROUND: China overtook the United States as the biggest auto market in 2009. Rapid growth prompted automakers to invest in additional factories, raising the threat of a glut of production capacity after sales growth unexpectedly plunged.