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. EXPORT DEMAND STILL ‌GROWINGBy contrast, electric vehicle and plug-in hybrid ⁠exports grew 147.8% year-on-year, versus a 3.9% drop in their domestic sales. Automakers have stepped up efforts to expand abroad, particularly in Europe, Southeast Asia, Latin America and the Middle East, creating a pronounced gap between domestic and overseas demand. 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.