Dongfeng Motor said its net profits slumped 67.52 percent year-on-year to 95.67 million yuan ($15.2 million) in the first half of 2012.
The number of vehicles produced by Volvo and sold in China had shrunk by 28.4 percent in the Chinese market in July year-on-year.
The Chinese auto market did not escape the curse of "sluggish July" and has suffered a sales slump of nearly 10 percent from June.
Already bloated inventories at automobile dealerships across China continue to swell, signaling slowing sales and mounting pressures on both dealers and automakers.
Domestic automakers reported sharp profit declines in the first half of the year as vehicle sales slowed, and they will have a hard time meeting this year's sales targets.
Great Wall Motor Co, China's largest SUV producer, announced Wednesday that its first-half profit will jump 30.29 percent year-on-year.
A strong June has ended a solid six-month sales performance by China's passenger vehicle manufacturing industry.
US automaker General Motors said on July 5 that its sales in China in the first half of the year rose 11.3 percent from last year's previous record in the same period to 1,417,047 units.
China imported 117,000 automobiles in May, marking a 51.4-percent surge from a year earlier.
Sino-German joint venture Shanghai Volkswagen produced its 8 millionth car on June 28, just nine months after it made the 7 millionth vehicle.
German car maker Volkswagen increased group sales 7.8 percent in May as sturdy demand from China, the United States and eastern Europe offset an accelerating drop in VW's core western European markets.
Bayerische Motoren Werke AG, the world's biggest luxury car maker, said its group vehicle sales in China grew by 31.5 percent in May, accelerating from 30.8 percent in April.