(Yicai Global) Oct. 15 -- Sales of cars in China, the world's biggest auto market, fell the most in nearly seven years in September, posting a third straight month of declines and prompting one industry group to warn that the sector is heading for negative growth this year.

Sales dropped 11.6 percent to just under 2.4 million units last month, which is usually the country's peak period for buying cars, the China Association of Automobile Manufacturers said in a statement. Sales dipped 3.8 percent in August.

Car sales totaled 20.49 million for the first nine months of the year, up 1.5 percent year-on-year, but 2 percentage points lower than in January to August. Inventory held by dealers has crossed a warning line for nine consecutive months, while they have said business is unsatisfactory. Dealers may face increasing risks for the rest of the year, according to CAAM's Vehicle Inventory Alert Index.

The industry is probably looking at negative growth for 2018, said Xu Haidong, the association's assistant secretary-general.

On the bright side, new energy vehicles remain a driving force for the sector. Sales of NEVs maintained rapid growth, surging almost 55 percent to 121,000 units in September. Dealers sold 721,000 in the January to September period, an increase of just over 81 percent. Total annual sales are expected to hit a record 1.2 million. 

Editor: William Clegg