China's main auto-industry group reduced its annual sales-growth estimate for the second time this year.

The China Association of Automobile Manufacturers said Thursday that overall auto sales in the world's largest auto market are expected to show growth of no more than 3% this year, down from a previousforecast of about 5%. That pales in comparison to the group's initialestimate of 10% to 15% growth.

For the rest of the year, 'it would be good' if auto sales could match last year's level, said Xiong Chuanlin, the association's vice secretary.

Despite the weaker forecast, a 3% rise would represent sales of about 18.6 million vehicles, which would still cement China's status as the world's No. 1 car market. New-car sales in the U.S. totaled about 11.6 million vehicles last year.

China's auto industry has been hit by slower economic growth and the government's shift from encouraging people to buy cars. In the face of the 2008 financialcrisis, Beijing enacted a massive economic stimulusprogram that included subsidies for new-car purchases