The China Association of Automobile Manufacturers (CAAM) said on Thursday that 488,200 domestically produced passenger cars were sold nationwide in July, down 17.02 percent month-on-month.
CAAM said the decline occurred because many auto makers conduct checks on factory equipment in July and August and give employees a summer break.
However, sales from January to July were up 15.79 percent year-on-year, which indicated still-increasing domestic demand.
By vehicle type, 360,800 ordinary cars were sold in July, down 16.78 percent, while sales of sports utility vehicles fell 19.67 percent to 36,300.
The top five sellers in July were FAW-Volkswagen, Shanghai GM, Shanghai Volkswagen, Guangzhou Honda and Tianjin FAW Toyota.