CHINA'S auto sales this year may grow below an earlier forecast, with commercial vehicles seen hardest hit, due to a slower economy, an industry association's official said yesterday.

The full-year vehicle sales may grow less than 5 percent, said Gu Huaxiang, deputy secretary-general of the China Association of Automobile Manufacturers. The weaker outlook was lower than CAAM's estimate at the start of this year of an 8 percent rise to 20 million units.

"Vehicle demand will be depressed by the slower economy," Gu said. "Particularly, sales of commercial vehicles will be hit the hardest."

The demand for commercial vehicles is set to contract after China lowered this year's gross domestic product growth to 7.5 percent from 8 percent.

The government also raised retail fuel prices to a high yesterday, the second time in six weeks, which may further crimp consumers' buying plan.

In the first two months of this year, vehicle deliveries fell 6 percent year on year to 2.95 million units, CAAM's data showed.

The weak sales outlook may put a brake on global automakers such as General Motors and Volkswagen, which are banking on the China market to offset weak demand in Europe.

But the market slowdown may prompt luxury automakers to reduce prices amid rising inventory, analysts said.