China's passenger vehicle market recorded robust growth in July with rising sales and production, industrial data showed on Tuesday.

Some 1.82 million passenger cars were sold via retail channels in July, up 20.4 percent year on year, posting a relatively high growth compared with that in the past decade, data from the China Passenger Car Association showed.

Production of China's passenger vehicles amounted to 2.16 million units in July, surging 41.6 percent year on year.

The improving logistics and supply chains, increased business activity, the country's raft of pro-consumption measures, among other factors, all contributed to the auto market expansion, the association said.

China in late May announced it would halve the car purchase tax for passenger vehicles priced at no more than 300,000 yuan (about 44,389 U.S. dollars) and with 2-liter engines or smaller. The tax cut will last from June 1 to the end of the year.

Major auto companies also stepped up their promotional activities in July to counter the setbacks suffered earlier this year due to COVID-19 flare-ups, in order to meet their annual goals, according to the association.

In July, the retail sales of new energy vehicles (NEVs) in China soared 117.3 percent year on year to about 486,000 units. In the first seven months, the sales of NEVs totaled 2.73 million units, skyrocketing by 121.5 percent year on year, the data showed.

The car association noted that the improving supply and rising oil prices have warmed up the NEV market.

Despite the off-season, it is anticipated that the overall passenger car market would see high yearly growth in both production and sales in August.

The passenger car association also projected steady market expectations in August as the tax cut measures on car purchases will gradually show effects.

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