China’s car sales fell for the 10th straight month in July, though the pace of decline eased, contrasting with strong export growth as automakers step up overseas expansion to offset cut-throat competition in the world’s largest auto market.

Export Demand Still Growing

Exports rose 88.2% to 923,000, data from the China Passenger Car Association (CPCA) showed on Tuesday. Electric vehicle and plug-in hybrid exports grew 147.8% year-on-year, versus a 3.9% drop in their domestic sales.

The decline underscores broader strains in China’s economy, where sluggish household spending has left exports accounting for a greater share of growth. Sales at home slid 21.1% last month from a year earlier to 1.47 million vehicles.

Automakers Expand Overseas

Automakers have stepped up efforts to expand abroad, particularly in Europe, Southeast Asia, Latin America, and the Middle East, creating a pronounced gap between domestic and overseas demand. In the domestic market, some carmakers are also piling into the premium segment with bigger, feature-packed models.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.