Cui Dongshu, Secretary-General of the China Passenger Car Association, pointed out that the sluggish performance of the auto market in July 2026 stemmed from a confluence of factors. These included a resurgence in oil prices, a lackluster macroeconomic environment, seasonal downturns, the exhaustion of pent-up demand, and shifts in policy dynamics. Specifically, the uptick in global oil prices drove up domestic gasoline costs, significantly curbing demand for gasoline-fueled passenger vehicles. The macroeconomic indicators for July painted a bleak picture, with consumers adopting a more cautious approach to spending and showing a diminished appetite for high-value, long-lasting purchases. Additionally, the summer heatwave, a typical seasonal lull, deterred potential buyers, while the surge in demand witnessed in June had already depleted much of the prior demand, resulting in a simultaneous drop in both end-user orders and foot traffic at dealerships.