According to a report by CNBC in the United States, China’s automotive demand is expected to remain relatively weak in 2026, prompting automakers to accelerate their expansion into overseas markets.
Data from the China Passenger Car Association shows that from January to September this year, retail sales of passenger vehicles in China reached 13.33 million units, a year-on-year decline of 21.7%. Full-year retail sales are projected to fall by 22%, reaching approximately 18.5 million units. During the same period, sales of new energy vehicles declined by 12.8%, while profits in the automotive manufacturing sector dropped 22.8% year on year.
Adjustments to scrappage subsidy programs and tax incentives for new energy vehicle purchases have both affected consumer purchasing intent. A car sales professional with 26 years of industry experience in Beijing noted that sales performance during the "Golden September, Silver October" period this year was the weakest since the pandemic, with dealerships recording only two or three transactions per week. Consumers are placing greater emphasis on practicality, cost-efficiency, and long-term ownership expenses.
With domestic demand under pressure and intense price competition prevailing, Chinese automakers are increasingly turning their focus abroad. However, growth in auto exports faces risks associated with trade barriers in Europe and the United States. The ability to expand internationally while simultaneously improving profitability will pose a critical challenge for China’s automotive industry.
Original article: toutiao.com/article/1880306605403146/
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