BUSINESS

China May Car Sales Fall 22% as High Fuel Prices Hit Gas Cars

Published: Jun. 9, 2026 3:02 a.m. GMT+8

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In May 2026, retail sales of passenger cars in China fell 22.1% year-on-year to 1.51 million units. Photo: IC

China’s domestic passenger car sales slumped 22.1% in May as a collapse in demand for fossil-fuel vehicles reshaped the world’s largest auto market.

Retail vehicle deliveries fell to 1.51 million units last month, according to data released Monday by the China Passenger Car Association (CPCA). Sales of internal combustion engine cars plummeted 39% year-on-year to 560,000 units, while new energy vehicle (NEV) deliveries saw a milder 7.5% decline to 950,000 units.

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China's May domestic passenger car sales fell 22.1% to 1.51 million units, with internal combustion engine sales dropping 39%.
New energy vehicles (NEVs) captured a record 62.9% of retail sales, with pure EVs rising 3.9% while hybrids declined over 20%.
Passenger car exports surged 75.1% year-on-year to 784,000 units in May; full-year exports may surpass 10 million.

AI generated, for reference only

What Happened When

2025 (Reference)：: Full-year vehicle exports were approximately 8.3 million units.

First five months of 2026 (As of May 2026)：: Domestic retail sales dropped 19.5% to 7.1 million units.

May 2026：: China's domestic passenger car sales slumped 22.1% year-on-year. Retail vehicle deliveries: 1.51 million units. Internal combustion engine car sales: 560,000 units (down 39% year-on-year). New energy vehicle (NEV) deliveries: 950,000 units (down 7.5% year-on-year). NEVs accounted for a record 62.9% of total domestic retail sales. Pure electric vehicle sales: 637,000 units (up 3.9% year-on-year). Plug-in and extended-range hybrid sales: down more than 20%. Passenger car exports: 784,000 units (up 75.1% year-on-year).

AI generated, for reference only