July sales of new passenger vehicles in China surged 17% year on year to 1.77 million units, according to the China Passenger Car Association, as the market continued to rebound from lockdowns in the second quarter.

The association added deliveries of passenger vehicles to dealers, or wholesales, surged 40% to 2.12 million last month, as automakers tried to fulfil strong pent up demand following the lockdowns and the resulting supply chain disruption. Sales last month were comparable against weak year earlier level after total vehicle sales had fallen 12% in July 2021.

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A number of local electric vehicle (EV) startups have already reported their July sales including XPeng which said it delivered 11,524 vehicles last month and 80,500 (+100%) year to date (YTD).

Li Auto said July deliveries rose 21% to 10,422 units while Nio sales rose 27% to 10,422 units last month and by 22% to 60,879 YTD.

BYD Auto said its new energy vehicle (NEV) sales, including electric and hybrid vehicles, more than tripled to 162,530 units in July and at a similar rate to 803,880 units YTD.