CHINA’S passenger vehicle sales shrank for a second consecutive month in July.

Car sales reached 1.79 million units in July, down 2.6% from last year, data from the China Passenger Car Association (CPCA) showed, the second contraction in a row after a 2.9% slide in June.

Sales were up 1.7% at 11.44 million units in the first 7 months.

Chinese carmakers continued to bet on overseas markets, as domestic growth eased, with exports soaring 63% in July year on year following a 56% leap in June.

Tesla, which is preparing its Shanghai plant for the new Model 3, exported 32,862 China-made cars in July, the CPCA said.

Price cuts triggered by Tesla at the start of the year have roped in 40-plus brands in China and have shown few signs of easing.

New energy vehicles (NEVs), which have underpinned China’s auto sales growth, are losing steam. Sales of NEVs were up 31.9% in July, making up 35.8% of the total car sales. (SD-Agencies)