Latest statistics show that Shanghai Volkswagen sold 28,000 sedans in July, reclaiming the No.1 position of car sales in the Chinese market.

Insiders say this indicates Chinese consumers are regaining confidence in car consumption and beginning to pay more attention to brand, technology and quality, rather than just price.

According to the China Automotive Industry Association, China's car market experienced a "Black May" this year, with total sales of 177,700 sedans, down by 19.27 percent over the previous month, a heavy blow to almost all car producers.

In June, many car producers announced large-margin price cuts, but Volkswagen lagged behind. In the month, Shanghai General Motors (GM) replaced Shanghai Volkswagen in the "best seller" position.

Two joint ventures of the German carmaker Volkswagen and one of the US auto giant GM top the rankings of China's biggest 10 sedan producers both in production and sales in the first half of this year.

China's car market is price-sensitive. But experts noted that price-cuts could only have short-term effects. In the long run, other factors, such as technology and service, will win out.

Source: Xinhua