July retail sales of light passenger vehicles in China fell sharply year-on-year, driven by weaker demand and subsidy withdrawals.
China’s retail sales of light passenger vehicles fell 20% year-on-year in July to 1.461 million units, reversing a 6% gain in the same month last year. The decline was led by a 41% plunge in internal combustion engine vehicle sales to 510,000 units, while new energy vehicle sales dipped 4% to 951,000 units.
Year-to-date sales through July dropped 20% to 10.173 million units, down from 12.736 million units in the prior-year period. New energy vehicle sales fell 16% to 5.665 million units, reflecting reduced government incentives and softer consumer spending amid slowing economic growth.
Economic expansion slowed to 4.3% in the second quarter, down from 5.0% in the first quarter, as household consumption weakened. Rising fuel and energy costs further dampened demand despite government stimulus efforts.