Despite nine consecutive months of decline, China's auto market shows paradoxical dynamics: domestic sales have collapsed while exports hit records. In June 2026, sales of new passenger cars in China fell 23.4% year-on-year to 1.62 million units, reports infohub.kz.
The decline has continued for nine straight months: in May, the drop was 22.3%. In the first half of the year, sales fell 20.4% to 8.8 million vehicles. The main causes are weak consumer demand, economic uncertainty, and cuts in government subsidies. Particularly hard hit were budget gasoline cars (down 34%) and electric vehicles (down 43%).
Meanwhile, exports of Chinese cars continue to grow at a record pace. In June, 882,000 vehicles were shipped abroad (+82.1% from June 2025), and in the first six months of 2026, 4.28 million cars (+70.6%). The main destinations remain Europe, Southeast Asia, and Latin America. Overseas shipments help offset weak domestic demand.
The premium segment proved more resilient: wealthy Chinese are switching to expensive, tech-laden models, strengthening the position of local brands. Earlier reports indicated that foreign brands such as BMW, Mercedes, Audi, and Volkswagen are losing customers in China.