With Gasgoo Daily, we will offer daily important automotive news in China. For those we have reported, the title of the piece will include a hyperlink, which will provide detailed information.
CPCA Forecasts Seasonal Decline in July Auto Market, NEV Penetration Expected to Hit New High
Following the mid-year sales surge in June, China's auto market is set to slip back into its traditional seasonal lull in July, according to the latest forecast from the China Passenger Car Association (CPCA). Retail sales of passenger vehicles are projected to reach roughly 1.52 million units — a 16.8% drop from a year ago and a 5.1% decline from June. New-energy vehicles (NEVs) are expected to buck the trend slightly, with retail sales forecast at 980,000 units. That would push the market penetration rate to 64.5%, marking a fresh historical high.
The CPCA also reviewed June's performance. Data shows passenger vehicle retail sales hit 1.602 million units. While that represents a 23.2% plunge year-on-year, it marks a 6.1% increase from May, reflecting a rebound driven by the end-of-quarter push. NEVs proved resilient, with retail sales reaching 1.007 million units and a penetration rate of 62.9%. For the first half of the year, cumulative passenger retail sales totaled 8.701 million — a 20.2% annual decline — suggesting the market is stabilizing after falling from its peak. NEVs accounted for 4.704 million of that total, securing a 54.1% share and cementing their dominance. In contrast, internal combustion engine vehicles saw sales slide 26.4% to 3.996 million units, with their market share accelerating its decline.
Changan Group, China Telecom Sign Strategic Partnership Agreement
Changan Automobile Group and China Telecom Group signed a strategic partnership agreement in Beijing on July 22.
The ceremony was attended by Zhu Huarong, Party Committee Secretary and Chairman of Changan, and Ke Ruiwen, Party Committee Secretary and Chairman of China Telecom.
CATL, Dalian Deta Sign Strategic Cooperation Agreement
On July 23, CATL and Dalian Deta have officially signed a strategic cooperation agreement. The two parties will launch comprehensive collaboration across core areas. These include aftermarket services and vehicle-to-grid (V2G) technology. They also cover the construction of urban battery swap networks. Furthermore, the parties aim to promote green transport. This will jointly drive the city's green and low-carbon transition.
This partnership builds on a solid foundation of existing collaboration. Currently, 100% of the new energy buses operated by Dalian Deta are powered by CATL batteries. Building on that, the two sides are extending electrification to the official vehicle sector. This is a key focus of the agreement. Under the agreement, CATL will assist Dalian Deta in advancing the electrification of 300 government vehicles in the Jinpu New Area.
