Global sales of Chinese-made vehicles, including exports, declined by 5.1% year-on-year to 2.712 million units in August 2026, after rising by 16% to 2.857 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 24% to 1.702 million units last month, after rising by 15% to 2.246 million units a year earlier, while exports surged by 65% to 1.010 million units from 611,000 units.
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Total sales of light passenger vehicles declined by 6.2% to 2.383 million units in August, while commercial vehicle sales rose by 4.1% to 329,000 units. Overall vehicle production in the country declined by 4.7% to 2.684 million units.
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 vehicle trade-in subsidy programme has been extended until the end of 2026, however, as part of a broader policy of boosting domestic consumption.
Earlier this year, the Chinese government took action 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. Automakers are 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.
Economic growth in the country slowed to 4.3% year-on-year in the second quarter of 2026, down from 5.0% year-on-year in the first quarter, reflecting mainly weak domestic consumption and investment.
In the first eight months of 2026, sales of Chinese-made vehicles declined by 3.8% to 20.315 million units after rising by 13% to 21.128 million units a year earlier, with sales of light passenger vehicles falling by 5.5% to 17.373 million units, while commercial vehicle sales rose by 5.6% to 2.942 million units. Domestic sales declined by 22% to 13.162 million units in this period, while exports surged by 67% to 7.153 million units, including a 35% rise in overseas shipments of non-NEVs models to 3.719 million units.
Sales of Chinese-made new energy vehicles (NEVs), comprising mainly battery-powered and plug-in hybrid vehicles, increased by almost 11% to 12.293 million units in the eight-month period, with domestic sales falling by 8% to 8.859 million units, while exports surged by 124% to 3.434 million units. Overall sales of battery electric vehicles (BEVs) rose by over 17% to 7.222 million units in this period, while sales of plug-in hybrid vehicles (PHEVs) fell slightly to 3.428 million units.
GlobalData is forecasting a 13% decline in light vehicle sales to 23.4 million units in 2026, down from 26.9 million units in 2025.
Manufacturer performances
SAIC Motor reported a slight decline in group sales to 2,741,029units in the first eight months of 2026, despite overseas sales surging by 53% to 1,015,580 units, while overall NEV sales increased by 30% to 1,163,358 units. The SAIC-GM-Wuling joint venture reported an 8% sales decline to 916,523 units in this period, while the group’s SAIC Motor passenger vehicle unit reported a 51% surge to 760,217 units. SAIC-VW’s sales plunged by 34% to 432,241 units, while SAIC-GM’s sales fell by over 9% to 300,935 units.
BYD reported a 7% sales decline to 2,668,015 units year-to-date, with domestic sales plunging by 33% to 1,505,755 units, while overseas sales surged by 86% to 1,162,260 units. Overall sales of passenger BEVs declined by 3% to 1,356,814 units, while sales of passenger PHEVs dropped by 11% to 1,265,022 units, and commercial NEV sales rose by 21% to 46,179 units.
Geely Auto, excluding key overseas subsidiaries and joint ventures such as Volvo, Polestar, and Proton, reported a 2% increase in global sales to 1,943,313 units year-to-date, supported by a 170% surge in overseas sales to 690,985 units.
Chery Automobile’s global sales increased by 11% to 1,914,481 vehicles in the first eight months of 2026, driven by a 68% surge in overseas sales to 1,343,334 units. Changan Auto’s sales fell by 18% to 1,477,200 units, while GAC Group, including its joint ventures with Toyota and Honda, reported a slight increase in global sales to 1,012,603 units. Great Wall Motor’s global sales also increased by 2% to 805,358 units, including a 47% surge in overseas sales to 415,958 units.
Tesla’s Shanghaifactory sales rose by 17% to 647,694 units year-to-date from weak year-earlier volumes, with exports surging by 115% to 331,443 units, while retail sales in China declined by 12% to 316,251 units.
