(Yicai Global) Aug. 9 -- The China Passenger Car Association has adjusted its sales forecast for new energy passenger vehicles this year to 6 million units, up from 5.5 million, as July sales smash expectations. And the yearly forecast could still increase in the fourth quarter, the car industry body said today.

In July, electric car sales more than doubled from the same period last year to 486,000 units, beating the association’s previous estimate of 450,000 autos, the CPCA said. In the first seven months, NEV sales also more than doubled year on year to 2.7 million vehicles.

Monthly sales from August to the end of year are likely to reach more than 600,000 units, said Secretary-General Cui Dongshu. There could soon be explosive demand for NEVs priced between CNY150,000 (USD22,209) and CNY250,000, as the price of raw materials falls and supply improves, he added.

Together with the predicted sales of 350,000 electric commercial vehicles, NEV sales could come to 6.5 million units this year, the CPCA said.

Sales growth over the next few months will depend on how much factory output increases, Cui said. In July, China produced nearly 580,000 electric cars. This could reach as much as 700,000 units a month soon.

Sales of all types of passenger cars grew at the fastest clip in a decade last month, jumping 20.4 percent from the same period last year to 1.8 million units, the CPCA said. NEVs' penetration ratio reached 26.7 percent in July, 11.9 percentage point more than a year ago, it added.

Editors: Tang Shihua, Kim Taylor