The decline underscores broader strains in China’s economy, where sluggish household spending has left exports accounting for a greater share of growth. We had anticipated a noticeable improvement in July,” said Cui Dongshu, secretary-general of the CPCA, attributing the weakness to elevated fuel prices that have weighed on gasoline-powered vehicle sales and subdued demand for entry-level sedans. By contrast, electric vehicle and plug-in hybrid exports grew 147.8 per cent year-on-year, versus a 3.9 per cent drop in their domestic sales. For the first seven months of the year as a whole, domestic passenger vehicle sales declined 20.5 per cent, equivalent to about 2.65 million fewer vehicles than in the same period a year earlier. In the domestic market, some carmakers are also piling into the premium segment with bigger, feature-packed models, including Xiaomi’s extended-range SkyNomad SUV series.