Automakers are concerned about slowing demand as the world's second largest economy loses its post-pandemic impact.
Automobile sales were 1.79 million units in July, down 2.6% from last year, data from the China Passenger Car Association (CPCA) showed a second consecutive contraction after falling 2.9% in June.
However, in the first seven months of the year, sales rose by 1 .7% to 11.44 million units.
Chinese automakers continued to bet on overseas markets as domestic growth slowed, with exports up 63% year-on-year in July after a 56% jump in June.
Sales of NEVs, which include electric vehicles and plug-in hybrids, rose 31.9% in July, accounting for 35.8% of total vehicle sales. In