Primary Taiwanese news agency Central News Agency (CNA) recently reported that the Passenger Car Market Information Joint Committee of the China Automobile Dealers Association (CPCA) just released its July National Passenger Car Market Analysis Report. In July, the retail sales of passenger cars increased by 6.3 percent year-over-year, and the retail sales of new energy vehicles increased by 12 percent year-over-year. July’s auto sales growth slowed significantly compared to June.
The reason behind this significant slowdown is inseparable from the Chinese government’s efforts to crack down on price wars in the auto industry. China’s auto industry faces major problems like overcapacity and price wars. Government officials began working to rectify the vicious competitive environment in the first half of this year. China’s Ministry of Industry and Information Technology (MIIT) announced at the end of May that it would intensify its efforts to combat unfair competition in the auto industry, promote the “optimization and adjustment” of the industry structure, strengthen government inspections, and cooperate with relevant agencies in anti-unfair competition law enforcement.
Source: CNA, August 8, 2025
https://www.cna.com.tw/news/acn/202508080273.aspx