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 **** ociation 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.
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.
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.
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.
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