According to CPCA, sales of passenger car rose by 3.6% YoY but declined 6.0% MoM. Sales of mini passenger cars, still suffering from the withdrawal of the preferential purchase policies, declined 16% MoM and 20% YoY. Sales of passenger cars, excluding mini passenger cars, have declined by 4.6% on a MoM basis in July.
There is a strong negative seasonality factor on July car sales in China but not enough stat do have a reliable seasonal adjustment factor. Temporary incentives have also had a big impact.
The chart from CEBM Research indicates that car sales have essentially stalled in the past year.
It is also interesting to note that sales of commercial vehicles and trucks have been very weak this year. CV sales were down 11.5% YoY in July and 4.2% YtD while truck sales declined 14.1% in July and 5.6% YtD. Obviously not a sign of a strong economy.