Automobile sales in China fell 4.0 percent in July from a year earlier to 1.89 million vehicles, according to an industry association.
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The results come amid rising concern over the potential fallout of a Sino-U.S. trade spat.
Ford reported on Friday that its sales in China fell 32 percent in July, following a 38 percent fall in June.
The carmaker has been struggling from a lack of new models.
Earlier in the week, Ford announced plans to launch a new a new sport utility vehicle in China.
The China Association of Automobile Manufacturers said overall sales for the first seven months of the year were up 4.3 percent from the same period a year prior, totaling 16 million vehicles.
Last month's sales drop followed increases of 4.8 percent in June and 9.6 percent in May, according to Reuters.
Auto sales in China, the world's biggest vehicle market, had been rebounding steadily since February when sales volume fell 11.1 percent.
The industry association forecasts market growth of 3 percent this year, in line with last year, but much below the 13.7 percent gain of 2016.