China’s auto market extended its recovery in July, with preliminary data from the China Passenger Car Association showing overall new-vehicle sales rising 25% from a year earlier. Sales of new-energy vehicles (NEVs) matched that pace, underscoring steady consumer demand despite an uncertain global outlook. The latest monthly figures build on a broader shift toward electrification. The China Machinery Industry Federation reported that NEVs accounted for 44.3% of total passenger-car sales in the first half of 2025, the highest penetration rate recorded for the period. Carmakers are benefiting from the trend. SAIC Motor, the country’s biggest auto group, said July deliveries jumped 34% to 337,500 units, marking a seventh consecutive month of growth. Its NEV sales surged 65% to 117,000 vehicles, outpacing the wider market and highlighting strong momentum in the segment.