Bloomberg reported that General Motors Co the biggest overseas automaker in China sales growth fell in August to the slowest rate in at least 17 months after government stimulus measures that boosted sales a year earlier wore off.

The company said GM and its Chinese joint ventures last month sold 181,625 units or 19.2% more vehicles than a year earlier in the world largest auto market. In July, GM China sales rose 22%.

Economic uncertainty and the waning impact of last year stimulus measures may have kept car buyers away from dealerships in China while the strong sales a year earlier made it harder for GM to maintain previous rates of growth. The company deliveries in the nation more than doubled to 152,365 vehicles in August 2009 as tax cuts and other incentives raised sales.

Mr Tim Lee GM president of international operations said “The Chinese market continues to be strong for us. GM will grow with the market. That means our manufacturing and distribution capacity has to grow.”

GM which is preparing for an initial public offering that may raise as much as USD 16 billion makes vehicles including Buick Excelle cars and Chevrolet Cruze compacts with its Chinese joint venture partner SAIC Motor Co in China. GM passenger car ventures with SAIC sold 81,067 units last month.

(Sourced from Bloomberg)