July sales of sedans, sport utility vehicles, minivans and multipurpose vehicles fell 3.9 percent from a year earlier to 1.53 million units, according to the China Association of Automobile Manufacturers, for the 13th straight month.
For the first time in a generation, the reported downturn in the auto market shows no signs of weakening, as China's economy faces a slowdown and tighter emission limits and a trade war weighs on demand.
Automakers who have relied on the world's largest growing vehicle market for decades to invest billions of dollars in the country are now questioning possible future investments.
After three months of unsuccessful negotiations on both sides, the US President announced recently this month that the United States will impose an additional 10% tariff on Chinese exports in September for an additional $ 300 billion.
The International Monetary Fund claims the dispute will dampen China's economic growth and could have a "significant negative secondary impact on the world."