German carmaker BMW AG reported an 11 percent rise in sales in China in the first 10 months of the year Tuesday (Nov 9) and was bullish about the Chinese market.

The company reported a smaller-than-expected 7.6 percent rise in third-quarter pretax profit last week, but reaffirmed its forecast for record revenue, earnings and car sales this year.

"In the first 10 months of this year, BMW's sales in China were up 11 percent. Eleven percent is more than our global growth rate for BMW for the first 10 months," chief executive Helmut Panke said. At a conference of global CEOs in Beijing, Panke downplayed concerns about slowing growth of car sales in China, which has among the fastest growth in the sector anywhere on Earth.

"We should not overestimate the current situation because, after all, the automotive market in China has grown by 27 percent for the first three quarters," Panke said.

"I think, on the global level, having grown 27 percent still is the biggest growth market in the world."

China curbed lending to car buyers around the second quarter, sparking price cuts and inventory buildup, just as local and foreign car firms were investing billions of dollars to boost capacity in the country.

Car sales in the country climbed 7.4 percent in August from a year earlier, showing signs of life as buyers scared off by the credit clampdown trickled back into showrooms.

But that was well off the pace of last year and earlier this year, indicating persistent nervousness over the Chinese Government's efforts to prevent a rash of new bad loans.

After China's car market nearly doubled last year to about two million units, growth this year is forecast to slow to roughly 15 percent.

BMW's year-old factory in China sold 7,859 cars over the first nine months of the year, putting it on track to meet a scaled down first-year sales target of 10,000.

BMW's made-in-China sedans began rolling off the assembly lines in October last year.

Its joint venture with Brilliance China Automotive Holdings Ltd. is designed for initial annual capacity of 30,000 3 and 5 Series BMWs.

Brilliance, China's top minibus maker, had expected to sell 18,000 BMWs this year. But it lowered the target in September by more than 40 percent to "more than" 10,000 amid the industry downturn.

Editor: Donald