July sales were down 6.7 percent from June, the statement said, adding that the figure brought auto sales in the first seven months to more than 8.24 million units, up 28.58 percent from a year earlier.

Auto production, meanwhile, climbed 12.88 percent year on year to 1.238 million units in July. But on a month-on-month basis, the figure was down 4.34 percent from June. Production for the first seven months of the year hit 9.71 million units, up 39.42 percent year on year.

Retail sales of passenger cars grew 15.43 percent year on year to 822,300 units in July. But that was a fall from the 839,200 units sold in June.

The July passenger-car sales were "fine" because of government subsidies for purchases of fuel-efficient models and the discounts offered by dealers to lure customers, the statement said.

The government began offering subsidies of 3,000 yuan (442.8 U.S. dollars) from June 18 to promote the purchase of fuel-efficient vehicles.

Auto sales in August will weaken due to rising inventories, the statement forecast.

The average stockpile period, a measure of the time between car production and registration, lengthened to 58 days in July, from 55 days in June.