Passenger vehicle sales in China have continued to resist the mainland economic slowdown, rising 11 per cent year on year in July – traditionally a weak month for the motor industry.

Deliveries of passenger vehicles for the first seven months of the year rose 7.5 per cent to 8.74m units, the China Association of Automobile Manufacturers said on Thursday.

“The market has remained resilient in the face of tremendous economic uncertainties and elimination of [tax] incentives,” said Bill Russo, head of Synergistics auto consultancy in Beijing and former head of Chrysler in China. “This comes from the fundamental drivers of demand which include continued GDP growth and urbanisation which increases the number of middle class consumers that can afford to buy cars.”