China's car exports topped 1 million units in July for the second month running, and new energy vehicles (NEVs) are driving the boom.

NEVs made up more than half of exports for two months in a row, with 553,000 cars shipped overseas, up 145.5% on last year.

Total exports hit 1.043 million, up 81.3% year on year, according to the China Association of Automobile Manufacturers (CAAM).

China's auto industry broke the 1 million-unit barrier in June, and held it in July, after shipping over 900,000 in April and May.

That is no accident. China's full industrial chain, from lithium processing and battery manufacturing to electric motor controls and final assembly, gives the country a cost and capacity edge few can match, a CAAM official said.

Smart features like driver-assistance systems and AI-powered cockpits are helping win overseas buyers, the official added.

"Exports are becoming a key stabilizer and core growth engine," said Chen Shihua, deputy secretary-general of CAAM.