China's passenger car sales in August drove out quickly from a three-month slowdown although inventories continued to pile up at dealerships, according to an industry association.

Deliveries of sedans, sport-utility vehicles, multi-purpose vehicles and minivans accelerated from July's 8 percent increase by jumping 11.2 percent from a year earlier to 1.16 million units last month, the China Passenger Car Association said yesterday.

The association said the market rebound was within expectations as the high season for domestic car sales approaches in October.

But higher output has created a persistent problem in surplus inventory for dealers, the association said.

More than 1.22 million new cars rolled off assembly lines last month, an increase of 10 percent on an annual basis. The higher production brought this year's cumulative supply surplus to 737,353 units from 670,383 units by July.

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