Auto sales in China rebounded in August as subsidies for energy-efficient vehicles and a stronger currency spurred demand.

Sales in the world's biggest car market rose 55.7 percent over a year earlier to 1.21 million vehicles, up from 1 million vehicles the month before, the State Council's China Automotive Technology and Research Center said yesterday. The increase compared with an annual 17 percent growth in July and 19.4 percent in June.

Sales of energy-saving vehicles rose 32 percent to 129,600, the center said in a report posted on its website.

Demand was also relatively strong for imported vehicles, as Japanese and European auto makers increasingly focus on serving the market for smaller, affordable cars, the center's Chairman Zhao Hang said, without giving specific figures.

A recent rise in the value of China's currency has also stimulated sales of imported cars. "That makes things cheaper," Zhao said.

The rebound in sales is good news for global auto makers looking to China to drive sales amid weak global demand. Sales this year are forecast to grow by no more than 20 percent, well off the stunning 45 percent rise in 2009.

The center, one of several sources of monthly data on Chinese auto sales and production, estimated sales in January to August at 9.5 million vehicles, up almost 32 percent from the same period of 2009.

Monthly sales growth had waned after March's 63 percent rise, prompting the country in June to renew subsidies of 3,000 yuan (US$443) per vehicle for fuel-efficient cars and small trucks.

Auto makers have nonetheless begun cutting back on output to match slowing demand.

Production rose 10 percent in August to 1.2 million units, down slightly from July, the report said. Output in the first eight months rose 35.5 percent, to 10.9 million vehicles, it said.