China Car Sales Slide Again in July

Deliveries of passenger vehicles in China last month fell 3% to a 17-month low of 1.3 million units, according to the China Passenger Car Assn.

The state-backed China Assn. of Automobile Manufacturers calculates passenger car registrations fell nearly 7% year on year to 1.27 million units in July.

The continuing shrinkage suggests carmakers will resort to even greater price cutting, analysts say. Several foreign producers have already warned their earnings this year are likely to be hurt by the slump in China.

Dealer inventories have been steady at about 1.7 months since April. But the Chinese auto industry considers a 1.5-month supply unnaturally high.