China's auto sales for July posted a 29.7% jump compared to a year earlier at 2.42 million units even though overall sales for the first 7 months of the year were a low of 2%.
The data has been released by the China Association of Automobile Manufacturers (CAAM) outlining the factors of reducing the Covid-19 barrier and the government's incentives as the main contributors to the surge.
Based on the data, sales of power vehicles including electric trains (EVs), plug-in hybrids and hydrogen fuel cell vehicles increased by 120% in July compared to the same period the previous year.
On a monthly basis, July sales were 3.3% lower than in June due to the heat wave factor which slowed down refinery production levels and reduced customer visits to exhibition booths.
However, the kingdom's incentives including providing low purchase taxes for small-engine vehicles and subsidized petrol exchanges for electric vehicles are seen as helping to recover demand.
Meanwhile, sales for plug-in hybrids are seen to have tripled in the first 7 years of a tailspin of oil costs and soaring battery prices and EV sales doubled.
In addition, the demand for commercial vehicles is said to be still weak with total sales falling by 21.5% onwards indicating that China has not yet fully resumed its logistics and building infrastructure activities.
