China's gloomy auto market showed signs of recovery, though uncertainties still loom large.

Auto sales across the nation totaled 1.38 million units in August, up 4.15 percent from a year ago, said the China Association of Automobile Manufacturers (CAAM). Output in August stood at 1.39 million tons, representing growth of 8.72 percent year on year.

The August figure brought the amount for the first eight months of this year to 11.98 million units, a modest increase of 3.33 percent from a year ago. The output from January to August amounted to 11.86 million units, climbing 3.04 percent from the previous year, said the CAAM.

The once-sizzling auto market tapered off significantly after the government scaled back favorable purchase tax rates for smaller cars and put new limits on car purchases in Beijing.

Dong Yang, Secretary General of the CAAM, said the market performance will further improve in the rest of the year, which is the traditional peak sales season.

He expects auto sales in the country to grow by 3-5 percent from a year earlier to exceed 18.6 million units for the entire year.