BEIJING - China's passenger car sales fell 5.3 percent year-on-year in July, with a total of 1.5 million passenger vehicles sold, according to the China Passenger Car Association (CPCA).

Excluding minivans, passenger car sales declined 5 percent year-on-year in July and 8.8 percent in the first seven months compared with one year earlier.

The country's new energy passenger vehicles soared 53.7 percent year-on-year to 645,000 units during the January-July period.

CPCA saw potential recovery of passenger car sales in August despite signs of a short-term slip, as a slew of new makes are to hit the market.

The association also expects long-term growth incentive for China's auto market after the country vowed against using real estate as a short-term means of stimulating the economy, saying it may cut debt for Chinese individuals and families.

China, the world's largest auto market, saw a drop in car sales for the first time in over two decades in 2018.

To boost car sales, the government announced a series of measures, such as prohibiting local governments from imposing any limit on the consumption and use of new energy vehicles.