China Passenger Car Sales Forecast to Fall 22% in 2026

China’s domestic passenger-car retail sales are expected to fall 22% to 18.5 million vehicles in 2026, below the level recorded in the first year of the pandemic, according to the China Passenger Car Association (CPCA).

The forecast marks the association’s latest downward revision as weak consumer demand and reduced government incentives weigh on the world’s largest auto market. Carmakers are increasingly turning to exports, though overseas growth has not fully offset the domestic decline.