Leading Chinese automotive firm Shanghai Auto saw its vehicle sales rise by 7.8 per cent in 2004, according to statistics quoted in China's domestic state-run newspapers.

The firm, which partners world number one General Motors in the region, sold a total of 617,000 vehicles last year.

Shanghai Auto, which is the top Chinese vehicle manufacturer, is run by the state and is said to be targeting further expansion next year.

News of the firm's performance is likely to provide some comfort to the Chinese market, which has begun to cool in the last 12 months after a dramatic period in which it was the fastest growing market in the world.

Last year the rate of sales growth in China fell from 75 per cent in 2003 to 15 per cent.

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.