China's total vehicle sales fell 0.3% from a year earlier in July 2026, following a 3.2% decline in the previous month, according to data from the China Association of Automobile Manufacturers (CAAM). New energy vehicle (NEV) sales soared 23.7% year-on-year. For the first seven months of the year, vehicle sales dropped 3.7% year-on-year, compared with a 12.0% increase in the same period last year, while NEV sales climbed 9.6%. Last year, China's vehicle sales grew 9.4% year-on-year to a record high of 34.4 million units, accelerating from a 4.5% rise in 2024, while NEV sales surged 28.2%.