China's auto sales shrank in December and ended 2017 up a lackluster 1.4 percent over a year earlier as the popularity of SUVs helped to offset falling demand for sedans, an industry group reported Friday.

Last month's purchases of SUVs, sedans and minivans in the biggest market by number of vehicles sold shrank 0.7 percent from a year earlier to 2.6 million, the China Association of Automobile Manufacturers said. Total vehicle sales including trucks and buses edged up 0.1 percent to just over 3 million.

Weak demand is a setback for global automakers looking to China to drive revenue at a time when Beijing is pressing the industry to pour resources into developing electric vehicles.

2017's annual growth was barely one-tenth the previous year's 15 percent rate, which was boosted by a temporary tax cut.

Source: AP