(Yicai) Aug. 8 -- China’s car production, sales, and exports all set new record highs for a third consecutive month in July as the price war in the world’s biggest auto market showed signs of easing.

Car production jumped 12 percent to 2.229 million unit last month from a year earlier, according to data released today by the China Passenger Car Association.

Retail car sales rose 6.3 percent to 1.826 million, while wholesale volumes hit 2.221 million, a 13 percent increase. Exports, including complete vehicles and complete knock-down kits, surged 25 percent to 475,000, also setting a new monthly high.

In the new energy vehicle category, retail sales climbed 12 percent to 987,000, and exports soared 120 percent to 213,000, marking an all-time high for a single month.

BYD, Geely Automobile, and FAW-Volkswagen ranked as the top three carmakers by sales. Geely stood out with 202,000 units sold, a 71 percent increase. BYD and FAW-VW saw sales drop 12 percent to 275,000 and 2.9 percent to 111,000, respectively.

US-based Tesla failed to make the top 10, which CPCA Secretary-General Cui Dongshu attributed to multiple factors. In China, domestic brands have made significant strides in innovation and smart technology, with some surpassing Tesla in product appeal, he noted.

Tesla’s sales have been hit by strained trade relations with the United States, while founder Elon Musk’s close ties with the Trump administration also have sparked consumer boycotts overseas.

Cui also said the domestic auto industry has been shifting away from excessive price competition, which has benefited the entire supply chain and improved profitability. In June, the sector’s profit margin reached a high of 6.9 percent, signaling healthy development.

More stable pricing has also bolstered consumer confidence, Cui noted. Coupled with supportive national policies, this has sustained strong demand for vehicle purchases. He added that consumers are not solely focused on low prices but also on market stability.

Additionally, the planned reduction of NEV purchase tax exemptions from 10 percent to 5 percent in the coming years is expected to drive a surge in demand before the policy change takes effect.

Editor: Tom Litting