The Chinese automotive market will continue to grow this year despite reservations over the slowing pace of expansion, according to the world's leading car manufacturer.

General Motors' (GM) chief executive says he is anticipating growth in the region of 12 per cent as sales stabilise.

While acknowledging the impact on the market of government restrictions on personal loans, Phil Murtaugh told Reuters that the firm was confident demand would not evaporate.

“Most people look at ten to 15 per cent, and I think that's what we'll see,” he commented.

“We've gone from a period of rapid, unsustainable developing growth to a period of stable, normal growth.”

Industry analysts have predicted growth of ten per cent in the Chinese vehicle market for 2005, scaling down from the 15.5 per cent growth in 2004, and the enormous 75 per cent growth recorded in 2003.

Passenger car sales in China stood at 2.3 million units in 2004, building on 2003's total of 2 million, according to new statistics from the Ministry of Commerce.