(Yicai) July 8 -- Car sales in China fell for the third month in a row in June, according to data from an industry body, as slack demand for gasoline-powered vehicles offset a surge in new energy vehicle shipments.

Auto sales fell 6.7 percent from a year earlier to 1.767 million units last month, data released by the China Passenger Car Association showed today. That was despite a surge in sales of new energy vehicles.

Sales of gas-fuelled cars tumbled 27 percent to 910,000, partly as a result of a lack of new products, the CPCA said, and big discounts failed to arrest the slide. Second-quarter sales sank a more-than-expected 25 percent, it added.

NEV sales jumped almost 29 percent to 856,000 in June, while their market penetration rate increased to 48.4 percent from 34.9 percent a year ago.

But gas passenger cars did better in overseas markets, with exports climbing 31 percent to 299,000, while NEV exports rose 12.3 percent to 80,000.

Chinese carmakers including BYD, Chery Automobile, Geely Automobile, and Changan Automobile did well, with total sales of 1.03 million, up 10 percent from a year earlier, and a market share of 58.5 percent, up 9.3 percentage points.

Sales by major joint ventures, including those of Germany’s Volkswagen and Japan’s Toyota Motor, plunged 27 percent to 480,000 last month, while sales of their luxury cars slid 17 percent to 250,000.

NEVs such as BYD’s Song and Seagull were among the top sellers, while sales of previously popular gasoline cars did poorly.

The effect of price discounting may weaken this month, the CPCA said, as first-half promotions have disrupted normal auto market pricing. High temperatures over the summer holiday may also affect sales in July, it noted.

Editor: Tom Litting