Last week, China Passenger Car Association unveiled the sales report of passenger cars and EVs for the month of June. Passenger car sales in June declined 6.5% year over year to 1.68 million units. Sales of new energy vehicles — including battery EVs, plug-in hybrids and hydrogen fuel vehicles — declined 35% year over year to 85,600 units in June. While EVs resulted in the overall decline in China auto sales, Tesla TSLA and its smaller rival NIO Inc. NIO grabbed limelight by reporting higher sales.