China's leading automotive manufacturer says that it has sold more than one million units this year, in an indication of the market's enduring strength.

State-owned First Automotive Works (FAW) is the first domestic producer to surpass the landmark, after sales increased by 900,000 in comparison to last year.

The figures are likely to hearten analysts and industry observers after indications that the market had begun to cool.

FAW, which runs a joint venture with Germany's Volkswagen, told China Daily the sales had been achieved despite "high-flying raw material prices" and increases in car loan interest rates.

Annual growth remains steady in China according to the latest figures from the China Association of Automobile Manufacturers, although the rate of expansion is beginning to slow in the world's fastest growing car market.

At present accumulated vehicle sales for 2004 are growing at an annual rate of 17.6 per cent, as the total number of units sold approaches 4.23 million units - up from the 4.13 million units sold in the same period last year.