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China’s PV retail sales plunge 27% in October

Market driven lower by weak NEV and ICE vehicle sales.

Retail sales of light passenger vehicles in China, including sedans, MPVs, and SUVs, continued to plunge in October 2026, down by 27% year-on-year to 1.643 million units from 2.242 million units in the same month last year, according to data compiled by the China Passenger Car Association (CPCA). This was the thirteenth consecutive month of decline for the domestic passenger vehicle market, while exports of built-up and knocked-down vehicles continued to surge – rising by 68% to 932,000 units from 554,000 units a year earlier.

Retail sales of new energy passenger vehicles (NEVs), comprising mainly battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), declined by 14% to 1.109 million units, while sales of other passenger vehicles, including internal combustion engine (ICE) vehicles and hybrid electric vehicles (HEVs), plunged by 44% to 534,000 units last month.

Overall retail sales of light passenger vehicles in China fell by over 22% to 14.978 million units in the first ten months of 2026 after rising by over 9% to 19.273 million units in the same period last year. All major segments declined, including NEV sales, which fell by 13% to 8.869 million units following the withdrawal of some government subsidies and tax exemptions earlier in the year, while combined sales of ICE and HEV passenger vehicles dropped by 33% to 6.109 million units.

Economic growth in China picked up slightly to 4.5% year-on-year in the third quarter of 2026, up from 4.3% in the second quarter, with growth driven mainly by strong exports, while household spending weakened. Measures introduced by the central government to boost consumer spending have been undermined by rising fuel and energy prices resulting from the war in the Middle East.

Passenger vehicle exports surged by over 75% to 7.947 million units in the first ten months of the year, with NEV exports surging by 140% to 4.472 million units.

GlobalData forecasts a 21% decline in domestic light vehicle sales to 21.2 million units in 2026, down from 26.9 million units in 2025, followed by a 4% recovery to 21.9 million units in 2027.