Sales of new passenger vehicles in China fell by 9.9% year-on-year to 1.564m units in August, according to retail data released by the China Passenger Car Association (CPCA).
The market's weak performance last month was blamed on slower vehicle production in the country due to bad weather.
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The association also pointed out that wholesales of new energy passenger vehicle fell by 15.5% year on year last month after rising by 6% in July.
It expects market sentiment to pick up in September with retail sales expected to be flat but with a slight rebound in wholesale deliveries.
The weak market indicators in August come as the central government is looking for new ways to stimulate the domestic vehicle market, particularly the sale of high quality new energy vehicles.
Last week ministry of commerce spokesman Gao Feng said the ministry was currently carrying out research and consultations to help it formulate new policy proposals designed to stimulate growth in the automotive sector.
Any new measures will come in addition to stimulus policies already announced this year, including vehicle replacement incentives offered in January favouring new energy vehicles and increased pressure on manufacturers of electric vehicle batteries to lower production costs and prices.
Last month the state council issued new industry guidelines outlining a number of measures designed to support consumption, including relaxing and lifting regional restrictions on new vehicle registrations – particularly for new energy vehicles.
