Key facts
- China's domestic car sales decreased for the tenth consecutive month in July.
- Automobile exports from China increased by 88.2% in July.
- Sales of electric vehicles in China have declined.
- Domestic retail passenger-vehicle sales dropped 20.9% year-on-year in July.
- Sales in the first seven months of 2026 fell 20.3%.
China's domestic automobile sales continued their downward trend in July, marking the tenth consecutive month of decline. Domestic retail passenger-vehicle sales dropped 20.9% year-on-year to 1.46 million units, and sales in the first seven months of the year fell 20.3% to 10.17 million vehicles. This persistent slump is attributed to weakening consumer demand and the ongoing price war within the electric vehicle (EV) sector, exacerbated by fading government incentives. Despite the domestic slowdown, Chinese automakers have seen a significant boost in exports, with sales abroad surging by 88.2% in July, indicating a strategic shift by manufacturers to seek revenue and expansion opportunities in international markets as domestic demand falters.