Auto sales in China, the world's largest car market, grew 2.2 percent year-on-year in July to 1.28 million units, state media reported Wednesday.

However, sales were down more than 11 percent from June, when they reached 1.44 million units, the official China News Service reported, citing figures from the China Association of Automobile Manufacturers.

China, which overtook the US to become the world's top auto market in 2009, has become increasingly important for global players. Auto sales in the country rose more than 32 percent last year to a record 18.06 million units.

But the sector has since lost steam after Beijing phased out sales incentives such as tax breaks for small engine vehicles, originally introduced to ward off the impact of the global financial crisis.

Auto sales fell for two straight months in April and May, although they rebounded again in June -- rising 1.4 percent year-on-year.

The association warned last month that sales in China will hit the brakes this year, with forecast growth of five percent in 2011, down from an earlier forecast of 10-15 percent.

For the January-July period, sales rose 3.2 percent to 10.60 million vehicles, the association said.

Of the total sales in July, passenger cars rose 6.7 percent from a year earlier to 1.01 million units, while commercial vehicle sales dropped 12.2 percent to 263,500.