AUTO sales jumped 45 percent in China during the first half of the year as the booming economy and increased incomes continued to fuel demand.

China's automakers sold 2.45 million cars, sport utility vehicles, multi-purpose vehicles and minivans from January to June, compared with 1.69 million in the same period last year.

Production rose in tandem, expanding 44.2 percent to 2.57 million units in this year's first half.

In addition to the effects of the growing economy, auto sales also benefited from government initiatives, including the lifting of restrictions on small-engine vehicles and tariff cuts on imported models.

Passenger car sales grew 56 percent to 1.77 million units in the first six months while SUVs increased 68 percent to 109,173 units. There were 86,151 MPVs sold in the period, up 60 percent from a year earlier.

"The explosive sales came mainly in the first four months after a market rebound that started last September," said Rao Da, secretary of the Union of National Passenger Car Market Information.

In the first quarter, car sales jumped 54 percent to 1.2 million units.

But a slowdown occurred in June as price cuts tied to an influx of new models caused some buyers to delay their purchase plans and await further inducements.

June car sales tailed off to 379,907 units, 83,540 fewer than in May.