Bloomberg reported that China passenger car sales rose at the slowest pace in six months, as monetary tightening and the removal of government incentives dented demand at Chery Automobile Co. and Honda Motor Co.

The China Association of Automobile Manufacturers said wholesale deliveries including sport utility vehicles and minivans gained 0.3% to 1.34 million units last month. That compares with the 0.5% median estimate of five analysts surveyed by Bloomberg and is the slowest pace since May when sales dropped 0.1% to 1.04 million.

According to the auto industry group China vehicle sales have slowed from last year record 32% increase as inflation, higher interest rates and the end of a two year stimulus plan deter purchases. Deliveries for 2011 may rise the least in 13 years, adding to signs China economy is slowing.

Mr Yale Zhang MD at industry consultant Autoforesight Shanghai Co said “Inflation and gasoline prices are high and the outlook is still uncertain. This has reduced consumers’ will to purchase.”

Mr Dong Yang deputy head of the association said that China vehicle sales will very likely grow more than 2% this year.

According to association numbers Minivans, popular in rural areas to transport goods and people fell 9.5% last month in China leading declines in passenger-car deliveries. That extends this year slide to 9.8%. Sport-utility vehicle sales gained 21% in November.

(Sourced from Bloomberg)