China auto sales shrink in April as demand cools sharply

China - An industry group says China's auto sales shrank in April as demand slowed sharply in the world's biggest car market.

The China Association of Automobile Manufacturers said Thursday (May 11) that sales of passenger cars, including minivans and SUVs, fell 3.7% in April over the same period a year ago to 1.7-million.

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That's down from a 1.7% sales growth in March.

The association said sport utility vehicles were the only segment that grew, with sales rising 11.1% over a year ago to 684 400.

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Auto demand in China has been cooling since Beijing raised a sales tax at the start of the year.

The group said April was a weak month for China's auto market, with production and sales both falling significantly.