Sales of Chinese-made vehicles, including exports, declined by 3.2% to 2.81 million units in June 2026 after rising by 14% to 2.904 million units a year earlier, according to passenger car and commercial vehicle wholesale data compiled by the China Association of Automobile Manufacturers (CAAM). Domestic sales plunged by 23% year-on-year to 1.773 million units last month, after rising by 10% to 2.312 million units a year earlier, while exports surged by 75% to 1.037 million units from 592,000 units.
Total sales of light passenger vehicles declined by 5.3% to 2.402 million units last month, while commercial vehicle sales rose by almost 11% to 408,000 units. Overall vehicle production in the country declined by 1.2% to 2.760 million units.
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China’s light passenger vehicle market this year has struggled against strong year-earlier volumes, while sales have also been affected by the withdrawal of some government subsidies and tax exemptions for new energy vehicles (NEVs) at the end of last year. The government has also taken action this year aimed at ending the prolonged “race-to-the-bottom” price war among domestic manufacturers, which was seen as damaging to the industry’s long-term growth prospects, with automakers no longer allowed to sell their vehicles at prices below the cost of production. To help maintain affordability, manufacturers and dealers are now offering ‘ultra-long-term’ auto financing programmes, with repayment terms of up to eight years.
The economy expanded by a better-than-expected 5.0% year-on-year in the first quarter of 2026, after growth slowed to 4.5% in the previous quarter, driven mainly by strong exports. Consumer spending picked up slightly, helped by recent government stimulus measures, but growth remained sluggish at 2.4% year-on-year.
In the first six months of 2026, sales of Chinese-made vehicles declined by 4.1% to 15.017 million units after rising by 11% to 15.653 million units a year earlier, with sales of light passenger vehicles falling by over 6% to 12.720 million units while commercial vehicle sales rose by 8% to 2.297 million units. Domestic sales declined by 21% to 9.921 million units in this period, while exports surged by over 65% to 5.096 million units.
Sales of Chinese-made new energy vehicles (NEVs), comprising mainly battery-powered and plug-in hybrid vehicles, increased by 7.3% to 7.446 million units in the six-month period, with domestic sales falling by over 13% to 5.090 million units, while exports surged by 120% to 2.355 million units. Overall sales of battery electric vehicles (BEVs) rose by over 12% to 4.989 million units in this period, while sales of plug-in hybrid vehicles (PHEVs) fell by 1.2% to 2.457 million units.
The Chinese government has decided to continue its vehicle trade-in subsidy programme until the end of 2026, as part of its broader policy of boosting domestic consumption, but has reduced its NEV purchase tax incentive from a full exemption to a 50% discount. GlobalData forecasts a 6% decline in light vehicle sales to 25.3 million units in 2026, down from 26.9 million units in 2025, with the outlook deteriorating due to the ongoing conflict in the Middle East.
Manufacturer performances
SAIC Motor reported a slight decline in group sales to 2,045,375 units in the first six months of 2026, despite a 49% surge in overseas sales to 734,676 units, while overall NEV sales increased by 23% to 795,834 units. The SAIC-GM-Wuling joint venture reported a 10% sales decline to 681,094 units in this period, while the group’s SAIC Motor passenger vehicle unit reported a 49% surge to 549,190 units. SAIC-VW’s sales plunged by 31% to 338,591 units, while SAIC-GM’s sales fell by 6% to 231,154 units.
BYD reported a 16% drop in first-half global sales to 1,808,511 units, with domestic sales plunging by 40% to 1,016,255 units while overseas sales surged by 71% to 792,256 units. Overall sales of passenger BEVs dropped by 15% to 867,467 units, while sales of passenger PHEVs fell by 17% to 909,896 units, and commercial NEV sales fell by 5% to 31,148 units.
Geely Auto, excluding key overseas subsidiaries and joint ventures including Volvo, Polestar, and Proton, reported a 1% increase in global sales to 1,422,958 units year-to-date, supported by a 158% surge in overseas sales to 474,228 units.
Chery Automobile’s global sales increased by 8% to 1,357,533 vehicles in the first six months of 2026, driven by a 72% surge in overseas sales to 943,817units. Changan Auto’s sales fell by 17% to 1,118,894 units, while GAC Group, including its joint ventures with Toyota and Honda, reported a 2% increase in global sales to 773,085 units. Great Wall Motor’s global sales also increased by over 2% to 583,895 units, including a 47% surge in overseas sales to 291,426 units.
Tesla’s Shanghaifactory sales rebounded by 53% to 557,949 units year-to-date from weak year-earlier volumes, with exports surging by 127% to 228,994 units, while retail sales in China declined by 9% to 238,955 units.
