Imported vehicles at the Tanggu port in Tianjin. Though facing many uncertainties, an expert tipped China's imported vehicle sector to grow by 10 percent this year. [WANG JING / CHINA DAILY]

Despite slowing to single-digit growth, China's annual passenger vehicle imports surpassed 1 million units for the first time in 2012.

China imported 1.07 million vehicles last year, an increase of 9 percent on a year earlier, China Automobile Trading Co Ltd said on Tuesday.

However, the high inventory that has been accumulated and the fierce competition among foreign brands will be challenges in 2013, according to analysts.

Growth was down 25 percent year-on-year in the fourth quarter, according to China Automobile Trading.

"The increase in the first three quarters was based on an unhealthy price war in the market caused by oversupply," said Wang Cun, chief analyst and marketing manager with China Automobile Trading.

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