Domestic sales fall 26% as market pressures persist
HONG KONG — China’s passenger car exports rose 80% in June from a year earlier to about 905,000 vehicles, driven by strong demand for electric vehicles, the China Association of Automobile Manufacturers said, while domestic sales fell 26% as the home market faced price wars and weak consumer demand.
June’s export figure was up from 809,000 vehicles in May, the industry group said. In the first half of 2026, Chinese passenger vehicle exports jumped 72% to more than 4.4 million vehicles.
Domestic sales in the first half of 2026 totaled nearly 8.3 million passenger cars, the association said. June sales reached about 1.5 million vehicles.
China’s domestic car market has been under pressure as the overcrowded market faces fierce price wars, the AP reported. A prolonged slump in the property market has hurt household budgets, hitting demand. Cutbacks in government support for purchases of EVs have also taken a toll, according to the report.
Consultancy AlixPartners forecast that sales of light vehicles including passenger cars in China will likely fall 10%, partly because potential buyers could be holding off on purchases as they wait for prices to fall further, the AP reported.
Chinese automakers including BYD have been expanding into overseas markets and setting up factories in key markets, the AP reported. The expansion can help improve their profitability, but it has added to friction with trading partners.