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China’s Car Sales Growth Slows in July After Strong First Half, CPCA Says

China’s car sales momentum is expected to ease in July following a robust first half, the China Passenger Car Association (CPCA) said on Friday.

Retail sales of passenger vehicles are projected to reach approximately 1.85 million units this month, a 7.6% increase from a year earlier but down 11.2% from June.

New energy vehicle (NEV) sales are expected to total around 1.01 million units, resulting in a record penetration rate of 54.6%.

The CPCA said sales in early July were affected by demand brought forward to June, as manufacturers pushed aggressively to meet mid-year sales targets.

This front-loading led to a seasonal pullback in early July, with daily average retail sales falling to 39,700 units in the first week, a 1.2% year-on-year gain but a 5.8% month-on-month decline.

The CPCA forecasts fourth-week daily sales of 68,100 units, up 7.6% year-on-year but down 28.8% month-on-month.

The association noted that promotional activity remained steady in early July, with average discounts hovering around 25%.

The July outlook comes after a strong June, when car sales rose for a fifth consecutive month, climbing 18.6% year-on-year to 2.1 million units, accelerating from a 13.9% gain in May.

For the first half of 2025, passenger vehicle sales increased 11.2% to 11.1 million units.

In Europe, and despite a slight decline in the overall automotive market, Chinese automakers achieved a record share of 5.7% in European vehicle registrations last month.

According to data from Jato Dynamics, Chinese vehicle sales jumped 63% year over year in June to 70,832 units.

Last month, the Tesla Model Y and Model 3 were the best-selling BEVs in Europe. However, registrations of the Model 3 sedan dropped by 33% compared to the same month last year, totaling 10,849 units.

Cláudio Afonso founded CARBA in early 2021 and launched the news blog EV later that year. Following a 1.5-year hiatus, he relaunched EV in April 2024. In late 2024, he also started AV, a blog dedicated to the autonomous vehicle industry.