Auto sales grew at a slower pace last month due to seasonal demand, the China Association of Automobile Manufacturers said Thursday.
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Sales of passenger cars and commercial vehicles increased 8.2 percent from a year earlier, but were down from June's 9.9 percent gain. Sales reached 1.38 million units in July, a decline from 1.58 million units the previous month.
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Vehicle production also decelerated on a monthly basis with output weakening 6.2 percent from June to 1.44 million units. Production increased 10 percent in July from a year earlier and was up 0.9 percentage points from June.
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"July is China's traditional low season for car sales and it comes at a time when automakers overhaul equipment and do maintenance," the association said.
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Global carmakers, however, outperformed. General Motors Co and Ford Motor Co said July sales grew faster than the overall industry.
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GM reported sales by its China unit and local partners rose 15.1 percent to 199,503 vehicles while Ford said sales were up 32 percent at 42,560.
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China overtook the United States as the biggest car market by vehicles sold in 2010.
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The association added that given the seasonal factors, "the sales performance was relatively stable, suggesting the market's upward trend remains unchanged."
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The auto industry went through a rough patch in the first half of this year as it struggled to recover from a double-digit decline in January.
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Vehicle sales reached 10.98 million units in the first seven months, up 3.6 percent from a year earlier.
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These positive signs suggest China can achieve car sales of 20 million units this year, a forecast given by the association in January and maintained last month. If achieved, it would represent an 8 percent yearly increase in sales.
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The association said auto sales will likely pick up in the second half of this year as it expects the economic situation to improve.
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Citigroup said it expects a 5 percent rise in total auto sales this year, down from 2010's 32.4 percent rise.
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