China Passenger Car Sales Projected to Drop in 2026
The China Passenger Car Association forecasts a significant drop in domestic vehicle sales for 2026 followed by a modest recovery in 2027.
Cui Dongshu, secretary-general of the China Passenger Car Association, projects a significant downturn in China's domestic passenger vehicle market for 2026. Domestic car sales are expected to fall to 18.5 million vehicles in 2026, a sharp decline from the 23.7 million vehicles sold in 2025.
Industry forecasts suggest a modest recovery will follow in 2027, with sales expected to rebound by a median of 2%. This projected turnaround is attributed to the fading of short-term headwinds, reduced cost pressures, and improved product offerings.
Despite the anticipated recovery, the China Passenger Car Association expects industry competition to become increasingly polarized as the market stabilizes.
