China Auto Sales Growth Slows in March, But Rate is Getting 'More Sustainable' (GM) (F)

Ford (NYSE: F) and General Motors (NYSE: GM) are on watch early following news that auto sales in a key market are slowing.

Data out Friday from the China Association of Automobile Manufacturers (CAAM) has passenger car sales in China rising 7.9 percent in March to 1.71 million units. The number compares with an 11 percent gain in the January-to-February period.

CAAM said the slowdown can largely be attributed to a drop in minivan sales, which fell 23 percent over the prior year.

Including commercial vehicles, CAAM said sales grew 6.6 percent last month.

SAIC-GM-Wuling Automobile Co. is China's largest minivan maker. The partnership reported a 6 percent rise in March sales to 165,550 units.

While sales appear to be slowing, one exec with CAAM isn't worried, saying that sales levels now are more realistic and sustainable versus the 30 to 40 percent growth seen over the last few years.

Sharres of GM and Ford are both positive Friday morning.

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