The Chinese automotive market is preparing for its worst year since 2021. This forecast, citing data from the China Passenger Car Association, was presented by CNBC.
The reason for the pessimistic scenario is a sharp decline in demand following record sales in 2025. In the first six months of 2026, passenger car sales in China fell by 20.2%. As a result, the association has revised its retail sales forecast for the year down by 14%.
Two factors have intensified the pressure on the market: rising fuel prices and cuts to subsidies for electric vehicles. In June, transportation fuel costs increased by 15.3% compared to the same month last year. This led to a sharp decline in demand for internal combustion engine vehicles, with their retail sales dropping by 39%.
The global situation is also not encouraging. In May, 7,244,681 passenger and light commercial vehicles were sold worldwide. This figure is 4% lower than the results from May 2025. Thus, the global automotive market has recorded a decline for the fifth consecutive month.
In January, the decline was 2%, in February - 8.5%, in March - 3.5%, and in April - 3.4%.
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