China’s car sales growth slowed in July to 6.9%, with 1.85 million cars sold, due to weaker demand for hybrids. Sales of new energy vehicles grew by 12%, outselling gasoline cars for the fifth month. EV makers like Leapmotor and Xpeng saw record sales, while BYD and Li Auto struggled, with BYD’s China sales dropping by 12%.

BYD, the biggest rival to Tesla in China, saw a 12% decrease in vehicle sales and a drop in its share of the new energy vehicle segment to 27.8%. Li Auto reported a 40% sales decline, despite being one of the few Chinese EV manufacturers to post a full-year profit. Both companies are facing challenges due to weakening demand for hybrids.

The auto industry in China is facing challenges due to overcapacity and price wars, leading to a campaign by Beijing to stabilize growth. Car exports grew by 25% in July, with the industry ministry official announcing steps to support growth in the auto sector. The China Passenger Car Association upgraded its sales and export forecasts for this year, citing better than expected shipments both domestically and overseas.

Read more at Yahoo Finance: China’s car sales growth slows in July, with weaker hybrid demand