Sales fell 1.1% from the same month a year earlier to 1.92 million vehicles, data from the China Passenger Car Association showed. That compared with a 3.1% decline in July.
New energy vehicle (NEV) sales, however, jumped 43.2% to account for a record 53.5% of total car sales, as local EV champion BYD set a sales record and U.S. rival Tesla had its best month of 2024.
Car exports increased 24% after a 20% rise in July.
The numbers reflected waning consumer confidence, with first-time car purchases lagging behind trade-ins, the association said last week.
Drivers are eligible for a cash subsidy of as much as 20,000 yuan (USD 2,823) when trading in petrol-powered cars to buy NEVs, while those trading in petrol-powered cars for smaller-engine alternatives are entitled to up to 15,000 yuan.
In line with a downshift in consumer spending, local EV majors Nio and Xpeng launched lower-priced brands earlier this year.
Rising EV and plug-in hybrid sales have barely helped with challenges at dealerships that are battling price falls.
More than half of dealerships suffered a loss in January-June, with the ratio up 7.3 percentage points from a year prior, data from the China Automobile Dealers Association showed.
Money-losing China Grand Automotive Services, the second-largest dealership, was delisted from the Shanghai bourse in August after its stock traded below par value for 20 consecutive days.
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