BEIJING (AP) -- China's auto market weakened further in July as rapid sales growth cooled, an industry group reported Monday.
Sales declined 11.9 percent from June to 1.2 million vehicles, according to the state-sanctioned China Association of Automobile Manufacturers.
The slowdown is a setback for global manufacturers such as General Motors that are hoping China will drive sales as demand elsewhere weakens. Sales are forecast to grow by 20 percent this year but that is down sharply from 2009's breakneck 45 percent rise.
July's year-on-year sales growth of 14.4 percent was down from June's increase of 19.4 percent.
In China, automakers face rising costs and labor tensions, highlighted by recent strikes at parts suppliers affiliated with Honda Motor Co. and Toyota Motor Corp. that disrupted production.
China passed the United States last year as the biggest auto market on the strength of sales tax cuts, subsidies to rural buyers and incentives to encourage drivers to switch to cleaner vehicles.
Monday's report was in line with a report last week by the Cabinet's China Automotive Technology and Research Center, which also showed July sales slowing.
The latest figures reflected the rapid decline in sales growth this year as the impact of government incentives faded.
In the first seven months of the year, sales rose 43.6 percent from a year earlier to 10.3 million units, the CAAM said.
