Car output in China rose by more than 63 per cent from the year to August according to the latest figures reported by Reuters.

The State Statistical Bureau revealed that the number of units produced reached 169,400 for the month, down slightly from the previous month's total.

Indeed, in comparison with a record monthly high of 179,200 units in June, some analysts are suggesting that the phenomenal rate of growth in the region may finally be beginning to slow.

The Bureau sounded a cautious note, but remained upbeat about the region's prospects.

'There is a trend of short-term correction after car output and sales had sustained more than a year of rapid growth,' the Bureau said in a statement.

'It's unlikely that car output will exceed the record hit in June in the remaining months of 2003,' the Bureau added.

Total Chinese production is still expected to break the two-million-car mark this year.

The government has said it will soon unveil policies to cool down perceived over-investment in the sector.