China Passenger Car Market June 2026: NEV Growth Offsets Falling ICE Sales

The China Passenger Car Association (CPCA) released its passenger car market report for June 2026, covering sedans, SUVs and MPVs while excluding minivans. The latest figures show that the domestic passenger vehicle market continued to experience pressure as internal combustion engine (ICE) vehicle demand weakened significantly. However, the rapid expansion of new energy vehicles (NEVs) and record export performance helped offset part of the slowdown, with domestic vehicle manufacturers maintaining strong competitiveness both within China and overseas.

China Passenger Car Retail Sales Declined During June 2026

Passenger car retail sales reached 1.602 million units in June, representing a 23.2% year-over-year decline. Cumulative retail deliveries for the first six months totaled 8.701 million units, down 20.2% compared with the same period last year. Luxury vehicle retail sales stood at 170,000 units, declining 30% year over year. Domestic brands sold 1.10 million vehicles, capturing a market share of 68.6%, an improvement of 4.5 percentage points from a year earlier as their NEV and export businesses remained resilient.

Mainstream joint venture brands recorded retail sales of 330,000 units, a decline of 34% year over year. German brands accounted for 12.8% of the retail market, down 3.4 percentage points, while Japanese brands represented 11.0%, down 1.0 percentage point. American brands held a 5.8% share, down 0.1 percentage point. Although overall sales remained weak, some joint venture manufacturers began showing early signs of recovery.

Wholesale and Production Performance

Wholesale deliveries totaled 2.358 million passenger cars during June, declining 5.7% year over year. Domestic manufacturers shipped 1.781 million vehicles, increasing 6% from the previous year. In contrast, mainstream joint venture manufacturers recorded wholesale volumes of 367,000 units, down 34%, while luxury vehicle wholesale volumes declined 23% to 210,000 units.

Passenger car production reached 2.338 million units, representing a 2.7% decline year over year. Luxury vehicle production fell 13%, while joint venture production declined 27%. Domestic brands continued expanding production, recording a 7% increase compared with the previous year.

June 2026 Passenger Car Market Performance

New Energy Vehicle Market Continued Expansion

Wholesale deliveries of new energy passenger vehicles reached 1.481 million units, increasing 19.2% year over year. Battery electric vehicles (BEVs) totaled 981,000 units, up 26.9%, while plug-in hybrid electric vehicles (PHEVs) reached 406,000 units, rising 18.1%. Range-extended electric vehicles (REEVs) declined 25.2% to 94,000 units, whereas ICE-powered hybrid passenger vehicles increased 13% to 102,000 units.

Within the BEV market, A00-class micro vehicles recorded wholesale sales of 77,000 units and represented 8% of total BEV volumes. A0-class small vehicles reached 314,000 units, accounting for 32% of BEV sales. A-class compact models totaled 236,000 units with a 24% share, while B-class midsize vehicles achieved 295,000 units, increasing 37% year over year and representing 30% of all BEV wholesale volumes.

Leading NEV Manufacturers by Wholesale Volume

Twenty manufacturers exceeded 10,000 new energy passenger vehicle wholesale units during June, together representing 93.6% of total wholesale NEV volume.

• BYD – 397,292 units
• Geely – 158,849 units
• Chery – 106,922 units
• Leapmotor – 93,376 units
• Tesla China – 89,091 units
• Changan Auto – 72,194 units

Other manufacturers above the 10,000-unit threshold included SAIC-GM-Wuling, SAIC Motor Passenger Vehicle, NIO, XPeng, Dongfeng Motor Corporation, Xiaomi Auto, Great Wall Motor, Li Auto, Seres Auto, GAC Aion, BAIC Arcfox, GAC Toyota, SAIC-GM and FAW Bestune.

Retail Sales and Export Performance of NEVs

Retail sales of new energy passenger vehicles totaled 1.007 million units in June, representing a 9.4% decline year over year. Cumulative retail sales for the first half of 2026 reached 4.704 million units, down 14.0%. Despite softer domestic demand, exports continued to deliver exceptional performance and became the principal contributor to market growth.

China exported 499,000 new energy passenger vehicles during June, increasing 152.7% year over year. Battery electric vehicles accounted for 58.7% of exported NEVs, while A0- and A00-class BEVs represented 53.8% of total BEV exports. Year-to-date NEV exports reached 2.231 million units, rising 124.3%. BYD exported 170,897 units, followed by Chery with 73,819 units, Geely with 61,550 units, Tesla China with 36,171 units, SAIC Motor Passenger Vehicle with 30,581 units, Leapmotor with 21,000 units, Dongfeng Motor Corporation with 15,680 units, Changan Auto with 15,061 units, SAIC-GM-Wuling with 12,953 units and Great Wall Motor with 10,469 units.

Market Outlook for July 2026

The June market reflected three major trends: rapidly falling domestic ICE vehicle demand, sustained expansion of new energy vehicles and exceptionally strong export growth. NEV retail penetration exceeded 60%, reaching 62.8%, demonstrating that electrification continues advancing faster than expected. Overseas shipments also reached record levels, with NEVs accounting for 57% of total exports as domestic brands strengthened their global presence.

July will include 23 working days, providing favorable conditions for production and sales. Newly implemented crash safety requirements and mandatory battery thermal runaway safety standards are expected to reinforce confidence in electric vehicles. Adjustments to vehicle and vessel tax policies further improve the competitiveness of battery electric vehicles. Although NEV penetration is expected to remain high, growth may moderate slightly, while improving overseas demand for ICE vehicles and lower international oil prices could support a gradual structural recovery across the broader Chinese passenger vehicle market.

Frequently Asked Questions

What were the major trends in China's passenger car market during June 2026?
The Chinese passenger vehicle market experienced weaker domestic retail demand because of declining ICE vehicle sales, while new energy vehicles continued expanding rapidly and exports reached record levels. NEV penetration rose above 60%, domestic brands strengthened their market leadership, and overseas shipments became the primary growth engine. Wholesale volumes remained comparatively resilient despite retail weakness, highlighting the industry's ongoing transition toward electrification and stronger international competitiveness.