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By Bloomberg

Chinese vehicle sales grew 6.9 percent last year, missing the state-backed auto association’s revised forecast as the economy cools in the world’s largest car market.

Deliveries grew to 23.5 million vehicles, from 21.98 million in 2013, China Association of Automobile Manufacturers said today in Beijing. The group had in July predicted an 8.3 percent increase, cutting an earlier forecast for 10 percent growth.

Auto sales slowed last year as the world’s second-largest economy expanded an estimated 7.4 percent, the slowest pace since 1990. Deliveries will probably increase by single digits again this year -- compared with 14 percent in 2013 -- as more dealers push back against sales targets and Chinese cities restrict vehicle purchases to curb pollution.

“It is slowing down in growth but net increase will still be 1.5 to 2 million units,” said Lin Huaibin, a Shanghai-based analyst at forecaster IHS Automotive. “That is sizable and there’s still room for automakers to play.”

The increase in deliveries last year was the equivalent of an entire year’s auto sales in some smaller developed countries, such as France or South Korea.

SUV Demand

IHS estimates that light vehicle sales will expand 7 percent this year, with the sport utility vehicle segment being the strongest as consumers develop a taste for bigger vehicles, Lin said.

General Motors Co., which counts China as its largest market, saw sales in the country climb 12 percent to 3.54 million last year. That fell short of helping GM overtake Volkswagen AG to reclaim bragging rights as the country’s largest foreign automaker. The German automaker also reported a 12 percent gain in China deliveries, including Hong Kong, to 3.67 million vehicles.

Japanese automakers continued to struggle in China, with all three major companies missing their 2014 targets. Toyota Motor Corp. delivered 1.03 million units, short of its 1.1 million-unit forecast. The Toyota City, Japan-based company said it still intends to sell 1.1 million vehicles in China this year.

China, the world’s biggest carbon emitter, is encouraging policies to improve the nation’s air quality, with Beijing, Guangzhou, Shanghai and other cities putting limits on vehicle purchases. Shenzhen surprised drivers Dec. 29 when it capped the number of new license plates at 100,000 for 2015.

Chinese auto dealers are also complaining about having to meet unrealistic sales projections to qualify for year-end bonuses. Bayerische Motoren Werke AG agreed this month to pay 5.1 billion yuan ($820 million) to distributors in China to help cover losses after retailers stopped ordering cars.