BUSINESS

China’s Car Sales Slump Pushes Automakers Deeper Overseas

Published: Aug. 12, 2026 2:59 p.m. GMT+8

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China's passenger car market remains under pressure in July. Photo: VCG

China’s passenger-car market remained under pressure in July, pushing automakers to rely on overseas sales to offset weakness at home.

Domestic retail passenger-vehicle sales dropped 20.9% year-on-year in July to 1.46 million units, the China Passenger Car Association said Tuesday. Sales in the first seven months of 2026 fell 20.3% to 10.17 million vehicles.

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Domestic passenger-vehicle sales fell 20.9% YoY in July to 1.46 million units, with gasoline cars dropping 41%.
New-energy vehicles (NEVs) reached a record 65.1% of retail sales despite a 3.9% decline in unit sales.
Passenger-vehicle exports surged 87.8% to 918,000 units, driven by overseas expansion to offset weak domestic demand.

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Who’s Who

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What Happened When

April 2026：: New-energy vehicles' share of retail passenger-car sales first surpassed 60%.

July 2026：: China's passenger-car market remained under pressure; domestic retail passenger-vehicle sales dropped 20.9% year-on-year to 1.46 million units; two rounds of domestic fuel-price increases occurred; NEVs accounted for a record 65.1% of retail passenger-car sales; retail sales of new-energy vehicles fell 3.9% year-on-year to 951,000 units; passenger-vehicle exports surged 87.8% to 918,000 units; exports by joint-venture and luxury brands more than doubled to 143,000 vehicles; Nissan began exporting a China-developed vehicle from Zhengzhou to Latin America.