China's auto sales continued to increase in July, evidence of the steady growth of the world's largest car market, data from China Association of Automobile Manufacturers (CAAM) showed Friday.

Some 1.97 million vehicles were sold last month, up 6.2 percent year on year, extending the momentum in June that saw sales rise 4.5 percent.

Meanwhile, 2.06 million vehicles were produced in July, up 4.8 percent from the same period last year, according to the CAAM.

In the first seven months, total auto output and sales increased by 4.7percent and 4.1 percent year on year to 15.59 million and 15.33 million vehicles, respectively.

Sales and production of new energy vehicles maintained fast growth, and the market share of domestic brands went up in July, said the CAAM without giving further details.

Earlier data from China Passenger Car Association showed China sold 43,117 new energy passenger cars last month, surging 46 percent year on year.

The robust growth came as China has intensified efforts to encourage the use of new energy vehicles to ease pressure on the environment, by offering tax exemptions and discounts for car purchases, and ordering government organizations to buy more new energy cars.

China has been the world's largest car market for eight consecutive years.

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