China's auto market continues to accelerate, dissipating worries of slack in the industry.

Vehicle sales across the nation grew a robust 16.89 percent in September from a year ago and 17.73 percent from August to reach 1.56 million units, said the China Association of Automobile Manufacturers (CAAM).

The September figure brought sales in the first nine months to 13.14 million units, compared with 13.65 million for the entire year in 2009. Vehicle exports from January to September surged 76.8 percent year on year to reach 384,300 units.

The market is expected to turn bullish as September and October have always been peak seasons for auto sales, said Li Yinkang, a senior analyst at the Suzhou-based Soochow Securities Co. Ltd.

Though big cities continue to drive the sales boom, markets in smaller towns and the countryside have showed potential for growth, he said.

CAAM predicted that China will retain its position as the world's top car market in the next year and sales could exceed 17 million units this year.