Government subsidies for fuel-efficient vehicles and bigger discounts from dealers have increased passenger car sales for July, according to China Automotive Technology & Research Center Monday.

Combined sales of cars including sedans, sport-utility vehicles and multi-purpose vehicles reached 822,300 units last month, an increase of 15.4 percent from a year earlier, the center said. July's sales growth was 4.5 percent higher than June.

The state government last month announced it would offer up to 3,000 yuan (US$443) subsidies to encourage the purchase of fuel-efficient vehicles.

Also dealers provided bigger price discounts and gave gifts to lure consumers back to showrooms after sales slowed and stocks piled up.

The center said the financial aids worked effectively to boost market demand.

The 71 fuel-efficient vehicles from 16 car makers that are eligible for subsidies achieved total sales of 57,353 units in July, an increase of 12 percent from a month earlier.

Shanghai General Motors yesterday said July's sales were boosted by 42 percent to 80,279 units. Its 12 energy-saving vehicles on the subsidy list recorded a sales gain of 20 percent from a month earlier.

From January to July, passenger car sales grew 25 percent from a year earlier to 6.29 million units, the center said.

Yet center director Zhao Hang said the average stockpile period for passenger cars continue to expand to 60 days from 57 days in June.

He expects vehicle sales would slow down in August because hot weather may dampen output. The non-prime sales season and dealers' high inventory may also weaken the demand.

The center also said China's overall auto sales during the first seven months gained 29 percent to 8.24 million units while output jumped 39 percent to 9.71 million units.

July's auto sales rose 17 percent to 1.05 million units, a 6.7 percent drop from June.