Hyundai's total sales of vehicles stood at 300,816 units in the January-July period, sharply up from last year's sales of 294,506 units, the company said.

The automaker said its gain sprang up mainly due to China's tax cuts on small vehicles, cars with an engine size of 1.6 liters or less.

"Hyundai will continue to witness its sales increase steadily down the road," local analysts said.

The South Korean leading carmaker recently revised up its target sales in China for a second time this year on the back of stimulus measures by the Chinese government to spur demand.