BUSINESS

China Auto Sales Plunge as Domestic Demand Weakens

Published: May. 12, 2026 6:25 p.m. GMT+8

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China’s domestic auto sales fell sharply again in April, extending a slump that has gripped the market since the start of the year.

Passenger-vehicle sales in April dropped 21.6% year-on-year to 1.625 million units, according to data released Monday by the China Association of Automobile Manufacturers (CAAM). For the first four months of 2026, domestic vehicle sales fell 20.6% to 6.447 million units.

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China's passenger vehicle sales fell 21.6% YoY to 1.625M units in April 2026; first 4 months down 20.6% to 6.447M.
Gasoline sales dropped 32.2% to 710K units, NEVs 10.8% to 914K; NEVs reached 56.3% market share (61.4% passenger cars).
Exports rose 74.4% to 901K units; domestic sales forecast down 7-8% for 2026, total sales flat or +1%.

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Who’s Who

Volkswagen AG: Volkswagen AG launched key pure-electric models at the recent Beijing auto show, where NEVs accounted for nearly 80% of the 222 new models on display amid intensifying domestic competition.

Toyota Motor Corp.: Toyota Motor Corp. launched key pure-electric models at the recent Beijing auto show, where NEVs accounted for nearly 80% of the 222 new models on display amid intensifying domestic competition.

Nio Inc.: Li Bin, chairman of Nio Inc., said at the Beijing auto show that China's auto market is in its "final stage," with a razor-thin gap between top companies, those barely surviving, and those facing elimination. He noted his team "did not dare rest for even one minute."

Chery Automobile Co. Ltd.: Chery Automobile Co. Ltd. was one of the top three vehicle exporters in April, alongside BYD Co. Ltd. and SAIC Motor Corp. Ltd., amid surging exports that offset domestic sales declines.

BYD Co. Ltd.: BYD Co. Ltd. (002594.SZ) ranked among the top three vehicle exporters in April, with Chery Automobile Co. Ltd. and SAIC Motor Corp. Ltd. (600104.SH).

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. (600104.SH) ranked among the top three vehicle exporters in April, following Chery Automobile Co. Ltd. and BYD Co. Ltd., with exports jumping 74.4% overall to 901,000 units.

Geely Automobile Holdings Ltd.: Geely Automobile Holdings Ltd. ranked fourth among exporters in April, with exports surging 210% year-on-year to 101,000 units.

AI generated, for reference only