Data showing that the rate of increase in China has slowed is likely to concern industry observers, who have earmarked the region for massive automotive investment and huge production increases.

An industry official revealed that the China Association of Automobile Manufacturers had put June car sales at 164,852 - marking an annual rise of just 2.2 per cent, the lowest figure for a number of years.

Michael Dunne, of Automotive Resources Asia in Shanghai, told the Financial Times that the fall could be an indication of a significant trend.

"There has been sensational growth for so long and there is a very real chance we have hit an intermediate ceiling," he said.

Domestic producers and multinational manufacturers are thought to have ploughed more than $10 billion into building new capacity in the country in anticipation of the growing demand.

However, there was some good news for individual automotive firms, with both General Motors and Honda maintaining growth at a rate above ten per cent.