China July Car Sales Gain 6.3% on Year but Slip From June

China’s retail passenger-vehicle sales rose 6.3% in July from a year earlier to about 1.78 million units, according to data from the China Passenger Car Association. The result, broadly in line with a preliminary 7% increase released earlier in the week, marked a 12.4% decline from June as automakers faced a seasonal slowdown and continued industry-wide price competition. Sales of new-energy passenger vehicles—battery electrics and plug-in hybrids—reached 1.003 million units, up 14% year on year but 11.2% lower than the previous month. New-energy models accounted for roughly 56% of overall retail deliveries, underscoring the segment’s growing weight even as month-to-month demand eased. Automakers have recently pared back aggressive incentives after the Ministry of Industry and Information Technology warned in May that an escalating price war could destabilize the sector. JPMorgan estimates the average discount across Chinese brands fell to 16.7% in July from a record 17.4% in June, suggesting companies are testing whether firmer pricing can be maintained amid weak consumer sentiment and higher foreign tariffs on Chinese-built vehicles.