China auto sales cooled in July as consumers focused on the soccer World Cup and stayed away from showrooms amid severe summer heat.
 
Retail deliveries of cars and light trucks by domestic and foreign automakers such as General Motors (NYSE:GM) and Volkswagen (OTCPK:VLKAY) rose 11.5% to 1.32 million vehicles for the month, China's Passenger Car Association said Friday.
 
Sales growth was down from 14% in June, continuing a trend in recent months.

A separate report by China's customs administration said China's trade surplus surged to a record in July, climbing 14.5% vs. a year ago and topping estimates. Export growth unexpectedly rose while imports fell, suggesting weak consumer spending in China.
 
Auto industry inventories were elevated last month as demand continues to slow, pressuring dealers, Bloomberg said in a report, citing China Automobile Dealers Association figures.
 
Sales and earnings could be affected for Volkswagen, GM and Ford Motor (NYSE:F), which last month reached record market share in the Middle Kingdom.
 
Sales numbers put out by the state-backed China Association of Automobile Manufacturers also pointed to slowing sales. Car companies delivered 1.36 million passenger vehicles to dealers vs. 1.56 million the prior month, the report said.
 
GM has held up and earlier reported a 13% rise in China sales in July on strong demand for luxury brands, Chevrolet models and its Wuling joint-venture vehicles.
 
Japanese makers such as Toyota Motor (NYSE:TM) continue to struggle in China after Chinese consumers last year boycotted Japanese automakers amid a China-Japan dispute over nearby islands.
 
GM and Ford shares were up less than 1% in midday trading in the stock market today, Friday, while Volkswagen and Toyota were down fractionally.
 
Tesla Motors (NASDAQ:TSLA), which last year opened its first Chinese showroom, in Beijing, and whose stock is on the IBD Leaderboard list of top-rated stocks, was down about 2%. Shares have risen about 40% from a 177 low on May 9.