China's Car Market Stalls Even as Global Demand Keeps Growing
Exxon and Chevron’s $26.5 Billion Quarter Draws Trump’s Ire Felicity Bradstock is a writer and journalist based in Mexico City.
She writes for energy websites and covers several other industries, as well as writing… China’s domestic car sales have fallen significantly this year; however, sales of Chinese cars have risen substantially in some international markets, such as Mexico, demonstrating the growing global demand for Chinese-made vehicles.
This demand growth has been driven by the launch of a wide range of affordable and competitive Chinese electric vehicles (EVs) from companies such as Build Your Dreams (BYD).
China’s car market could experience its worst year since 2021, based on recent low consumer demand, compared to therecord-high sales of 2025.
Passenger vehicle sales decreased by 20.2 per cent in the first half of 2026, which led the China Passenger Car Association (CPCA) torevise its 2026 full-year retail sales projection downwardsto a decline of 14 per cent.
It had previously predicted flat year-on-year sales from 2025 to 2026.
The CPCA anticipates a final delivery volume of 20.4 million units by the end of the year, from a record23.7 million units in 2025.
Cumulative 2026 sales currently total 8.7 million units.
Meanwhile, the head of Hong Kong/China Industrials Research at Citic CLSA, Xiao Feng, expects sales to fall even further this year, by around 20 per cent year on year.
Feng expects the sales of new electric and hybrid vehicles to decrease significantly less, at between 5 and 6 per cent year on year for NEVS.
Sino Auto Insights founder Tu Letold the news outlet CNBCthat “this is going to continue to be a brutal year.” Several factors have contributed to the sales decline, including higher fuel costs and reduced subsidies for EVs.
Transportation energy costs rose by 15.3 per cent year on year in June,according to China’s National Bureau of Statistics, leading to a significant decline in the sales of internal combustion engine (ICE) vehicles.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment