China's car market is stalling as passenger vehicle sales have dropped by 20.2% in the first half of 2026. This marks the steepest decline since 2021, prompting the China Passenger Car Association (CPCA) to revise its forecasts:
Chinese automakers like BYD, Geely, and Leapmotor are continuing to strengthen their international presence, particularly in Mexico, where sales of Chinese vehicles have increased by 30%:
However, rising fuel costs and reduced EV subsidies have led to a decline in domestic demand:
The CPCA anticipates that car sales in China will decline by 14% in 2026, with a final delivery volume of 20.4 million units:
