Sales of Chinese-made vehicles, including exports, declined by 2.5% to 2.526 million units in April 2026 from 2.590 million units a year earlier, according to passenger car and commercial vehicle wholesale data compiled by the China Association of Automobile Manufacturers (CAAM). Domestic sales plunged by almost 22% year-on-year to 1.625 million units last month, after rising by 12% to 2.073 million units a year earlier, while exports surged by over 74% to 901,000 units from 517,000 units.
Overall light passenger vehicle sales declined by 4.2% to 2.129 million units last month, while commercial vehicle sales rose by over 8% to 397,000 units. Total vehicle production in the country declined by 1.7% to 2.575 million units.
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The Chinese domestic light passenger vehicle market this year has struggled against strong year-earlier volumes, as well as with the withdrawal of some government subsidies and tax exemptions for new energy vehicles (NEVs) at the end of last year. Earlier this year, the government introduced new regulations aimed at ending the prolonged “race-to-the-bottom” price war among domestic manufacturers, which was seen as damaging to the industry’s long-term growth prospects, with automakers no longer allowed to sell their vehicles at below the cost of production. To help maintain affordability, manufacturers and dealers are now offering ‘ultra-long-term’ auto financing programmes, with repayment terms of up to eight years.
The economy expanded by a better than expected 5.0% year-on-year in the first quarter of 2026, after growth slowed to 4.5% in the previous quarter, driven mainly by strong exports despite import tariff hikes by the US last year. Consumer spending picked up slightly, helped by recent government stimulus measures, but growth remained sluggish at 2.4% year-on-year.
In the first four months of 2026, sales of Chinese-made vehicles declined by over 5% to 9.574 million units after rising by 11% to 10.060 million units a year earlier, with sales of light passenger vehicles falling by almost 7% to 8.063 million units while commercial vehicle sales rose by 6.5% to 1.511 million units. Domestic sales declined by 21% to 6.447 million units in this period, while exports surged by over 61% to 3.127 million units.
Sales of Chinese-made new energy vehicles (NEVs), comprising mainly battery-powered and plug-in hybrid vehicles, increased slightly to 4.304 million units in the four-month period, with domestic sales plunging by 20% to 2.920 million units after surging by 46% to 3.658 million units a year earlier, while exports more than doubled to 1.384 million units.
Following last year’s strong growth, combined with reduced government incentives and the newly introduced price controls, the Chinese domestic vehicle market looks saturated, while consumer sentiment in the country also remains very cautious. GlobalData forecasts that light vehicle sales will expand by just 1% to 27.1 million units in 2026, up from 26.9 million units in 2025, followed by a 2% decline to 26.5 million units in 2027 as the effectiveness of government incentives wears off.
Manufacturer performances
SAIC Motor reported a 1.5% rise in group sales to 1,301,589units in the first four months of 2026, driven by a 50% surge in overseas sales to 459,200 units, while overall NEV sales increased by 2.8% to 412,301 units. The SAIC-GM-Wuling joint venture reported a 14% sales decline to 432,207 units in this period, while the group’s SAIC Motor passenger vehicle unit reported a 44% surge to 333,672 units. SAIC-VW’s sales plunged by 26% to 229,940 units, while SAIC-GM’s sales increased by 3% to 156,099 units.
BYD reported a 26% drop in global sales to 1,021,586 units year-to-date, with domestic sales plunging by 48% to 565,879 units while overseas sales surged by 60% to 455,707 units. Overall sales of passenger battery electric vehicles (BEVs) dropped by 24% to 467,333 units, while sales of passenger plug-in hybrid electric vehicles (PHEVs) fell by 28% to 535,760 units, and commercial NEV sales fell by 17% to 18,493 units.
Geely Auto, excluding key overseas subsidiaries and joint ventures including Volvo, Polestar, and Proton, reported a 1% rise in global sales to 944,522 units year-to-date, supported by a 9% increase in global NEV sales to 504,650 units, driven by a sharp rise in overseas sales to 286,210 units.
Chery Automobile’s global sales increased by 4% to 853,098 vehicles in the first four months of 2026, with domestic sales plunging by 41% to 282,214 units, while overseas sales surged by 66% to 570,884 units. Changan Auto sales fell by 16% to 767,000 units, while GAC Group, including its joint ventures with Toyota and Honda, reported a 3% increase in global sales to 500,889 units. Great Wall Motor’s global sales increased by 5% to 375,416 units, including 180,570 units sold overseas.
Tesla’s Shanghaifactory sales rebounded by 27% to 292,876 units year-to-date from weak year-earlier volumes, with exports surging by 127% to 154,122 units, while retail sales in China declined by 15% to 138,754 units.
