(Bloomberg) -- The intense price war in the world's largest car market is starting to calm down.
In the past two months, the proportion of cars subject to significant price cuts has fallen. In July, 428 variants of passenger cars — about 16% the market — had undergone price drops of more than 5% within a three-month period, according to Bloomberg analysis of data compiled by research provider China Auto Market.
The figure had peaked at 30% of car models as recently as May — the highest since at least 2015, when CAM's data became available.
The price war was initially triggered by Tesla Inc., and quickly spread throughout the market, ensnaring both electric and gasoline vehicles.
Read More: Tesla Started a China Price War That May Destroy Some Carmakers
Figures released Tuesday showed car sales fell 2.3% in July from a year earlier to 1.78 million units, though new-energy vehicle sales jumped 32%.
Read More: China July Retail Passenger Vehicle Sales -2.3% Y/y, NEV +31.9%
While prices are broadly stabilizing, steep discounts are still on offer for some models, including local manufacturer Chongqing Changan Automobile Co. and Jaguar and Land Rover — both controlled by India's Tata Motors Ltd.
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