China's motor vehicle sales and production both rose more than 20 percent in the first seven months of the year, according to figures from the China Association of Automobile Manufacturers (CAAM).

Auto sales in the January-July period surged 23.3 percent from a year ago to 5.11 million units, while output rose 24.7 percent to 5.01 million, indicating the country's is well on track to raise both its output and sales to a record 8.5 million for the full year.

About 3.63 million passenger vehicles - including sedans, sport utility vehicles and multi-purpose vehicles - were produced and 1.49 million trucks and buses left factory floor.

The 10 biggest automakers sold 4.15 million vehicles, taking an 83-percent market share.

Shanghai Automotive Industry Corp, Jilin-based FAW and Hubei-based Dongfeng Motor Corp were the top three best sellers. Chery maintained its position as the seventh largest manufacturer.

China surpassed Japan in 2006 to become the world's No. 2 auto market, with total sales of 7.2 million vehicles and output of 7.3 million. Passenger vehicle sales hit 3.8 million units last year.