China’s passenger-car demand cooled in July as the industry pulled back from aggressive price cutting. Retail sales rose 6.3% from a year earlier to about 1.83 million units, the China Passenger Car Association said. The tally marked a new July record but was 12.4% lower than in June, underscoring a loss of momentum after the mid-year buying rush. New-energy vehicles continued to outpace the broader market but also showed signs of slowing. Retail deliveries of NEVs climbed 12% year on year to 987,000 units, slipping 11.2% from June and pulling the total below the one-million threshold again. Battery-electric sales grew 24.5% to 607,000 units, while sales of plug-in and extended-range hybrids fell 4%—their first recorded annual decline—leaving NEVs with a 54% share of China’s retail market. Exports of NEVs jumped 120% to 213,000 units, helping lift total passenger-vehicle shipments abroad by 25%. The softer readings coincide with Beijing’s efforts to rein in a bruising price war that had eroded margins across the supply chain. Analysts at JPMorgan estimate average discounts slipped to 16.7% of sticker prices in July from a record 17.4% the previous month after regulators warned automakers against further under-cutting. Manufacturers have paused additional incentives for now but are prepared to resume them if market share comes under pressure, dealership executives said.