Sales of light and commercial vehicles increased 15 percent in July from last year to 2.08 million, the China Association of Automobile Manufacturers said.

China grew dramatically as a source of parts to feed North American vehicle production. But a shift is taking place in global supply chains.

Sales at Toyota, Nissan and Honda grew by more than 12 percent in July as the world's biggest auto market continued to recover from the coronavirus outbreak.

While overall new-vehicle sales have rebounded three straight months, China’s electric vehicle market has contracted nonstop following a cut in subsidies in June 2019. To jump-start EV demand, the Chinese government this month came up with two proposals: promote battery swaps and encourage automakers to market EVs to rural residents. Neither of the plans is expected to generate meaningful results any time soon.