China's passenger vehicle sales rose to 3.54 million in the first seven months this year, up 23.7 percent from the same period last year, according to the China Association of Automobile Manufacturers.

Sales of sedans jumped 26.6 percent to 2.64 million, sports-utility vehicles soared 46.4 percent to 187,600, while multi-purpose vehicles went up 17.8 percent to 124,400.

Passenger vehicle sales in July, however, declined by 10.45 percent from the previous month.

Changan Auto, one of China's auto manufacturers, saw the largest sales decline of 49.3 percent in July, followed by SAIC-GM-Wuling Automobile, down 15.8 percent, according to the China's Passenger Car Association.

Yang Dayong, deputy director of the Changan auto marketing department, explained, "July is an off-season for car sales. People just don't want to get out to buy cars in hot weather. Also minivans, largely used for carrying farm tools or agricultural products, are not demand because July is not a harvest season."

He also said a year-on-year comparison was more revealing as it excluded seasonal factors. Changan Auto's sales volume, compared with last July, still increased.

The three largest Sino-foreign carmakers continued to be the top three sellers. FAW Volkswagen was first with sales of 258,563, followed by Shanghai Volkswagen and Shanghai General Motors.

The indigenous carmaker Chery sold 197,923 vehicles, maintaining its fourth place.

The top ten sellers, which also included Guangzhou Honda, FAW Toyota and Geely, held a 64-percent market share.