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.