China's domestic automobile production and sales both reached 2.4 million units in July, a slight fall of 2.2 percent and 1.4 percent, respectively, from the same period last year, according to the China Association of Automobile Manufacturers (CAAM) on Thursday. 


The slowdown in July is due to the high comparison base of last year and the market's cyclical off-season effect, said Chen Shihua, deputy secretary-general of CAAM.


However, commercial vehicle production and sales achieved double-digit growth. From January to July, commercial vehicle production and sales both reached 2.25 million units, showing year-on-year growth rates of 16.9 percent and 15.9 percent, respectively. 


Meanwhile, new energy vehicles maintained a positive export trend. In July, export of new energy vehicles reached 101,000 units, indicating a month-on-month increase of 29.5 percent and a year-on-year increase of 87 percent. 


From January to June, the export of new energy vehicles stood at 795,000 units, with Belgium, the UK, and Thailand being the top three export destinations.


CAAM stated that the sustained improvement in China's wider economy contributes to the stable operation of the automotive industry.


The association expects the industry to achieve its growth target for the year, as new round of policies to stimulate the market will further unleash the potential for car consumption in the next half of the year.


Data from the National Bureau of Statistics showed that in the first half of 2023, business revenue of industrial automobile manufacturers increased by 13.1 percent year on year, reaching 4.49 trillion yuan ($627 billion). Total profits, on the other hand, reached 217.63 billion yuan ($30 billion), a year-on-year increase of 10.1 percent.