HONG KONG—China’s car sales rose almost 23% in June from a year earlier as production recovered in lockdown-hit Shanghai to meet pent-up demand and government cash incentives stimulated purchases in the world’s biggest auto market.

Sales for passenger cars also rose sharply to 1.94 million in June from 1.35 million vehicles in May, the China Passenger Car Association said Friday, a sign of buyers making up for lost time after falls in recent months caused by pessimism over the economy and social restrictions to fight the pandemic.

This post first appeared on wsj.com

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