China's automobile production and sales picked up in the first half of this year, both exceeding 3.5 million units, according to a source with the National Development and Reform Commission.

China's automobile output increased by 27.8 percent year-on-year in the first six months, said Zhu Hongren, an official with the National Development and Reform Commission at a press conference here on Tuesday.

Statistics show that automobile sales registered a yearly growth of 26.7 percent in the first six months.

Zhu said the huge increase in automobile sales will contribute to the growth of domestic consumption.

China's economy surged 10.9 percent in the first half of 2006, the fastest growth in a decade.