China's domestic automobile sales is expected to grow by 15 percent to hit 10 million this year, backed by strong demand for passenger cars, an official with the China Association of Automobile Manufacturers said on Saturday.

China's fast-growing economy created sound environment for the development of the automobile industry, Dong Yang, vice chairman of the association, said at an industry meeting held in the coastal city of Yantai in the eastern Shandong Province.

Despite of the slowing growth in business vehicles sales, demand for passenger cars remained robust, he said.

The government will move forward the industry restructuring by detailing standards on security, environment protection and energy saving, Dong said.

He noted the declining trend for auto prices will be reversed as a result of the sharp price hike in raw materials such as iron and steel.

"We should keep a clear mind of the overall industry competence lagged behind that of the multi-national companies," Dong said.

Latest figure with the association showed that over 4.3 million vehicles were sold in the first five months this year, up 17 percent from the same period last year.

Some 8.79 million domestically-made vehicles were sold last year.

(Xinhua News Agency June 22, 2008)