China's passenger vehicle sales shrink 2.9% in June as big-ticket spending falters

China's passenger vehicle sales fell in June, data from the China Passenger Car Association (CPCA) showed on Monday, as a stumbling economic recovery led to more consumer caution on big-ticket spending. Car sales in June totalled 1.91 million units, down 2.9% from last year, CPCA data showed. It was the first monthly contraction since January. However, sales advanced 2.5% to 9.65 million units in the first half of the year.

Meanwhile, sales of new energy vehicles (NEVs), including pure battery electric cars and plug-in hybrids, jumped more than 25% in June, accounting for roughly 35% of the total car sales. NEV sales surged more than 37% to 3.09 million units in the first six months. Both Tesla and rival BYD made record deliveries of their China-made vehicles in the second quarter, despite an uncertain recovery for the sector.

Chinese automakers counted more on overseas markets to sustain their sales growth, with car exports soaring 56% in June. However, Tesla's share in China's market of pure electric and plug-in hybrid cars fell to 8.8% in the second quarter from 10.5% in the first three months, according to a Reuters calculation based on CPCA numbers.