Vehicle Sales in China Reach Nearly 22 Million Units

Sales of cars, commercial vehicles and buses in China grew 14% last year, falling only 20,000 units short of 22 million, Bloomberg News reports, citing the China Assn. of Automobile Manufacturers.

CAAM says demand for passenger vehicles rose 15% to 17.9 million units in 2013.

But the industry group predicts this year's growth rate will slow to 9%-11% for cars and about 9% for all vehicles. Vice Secretary General Shi Jianhua explains that consumption is being pressured by efforts in China's largest cities to ease traffic jams and air pollution.

Shi adds that the central government's widening frugality campaign is certain to hurt sales of imported luxury vehicles.

Analysts tell Bloomberg that restrictions on cars in big cities will force China's foreign joint ventures to move into smaller inland markets.