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China Auto Sales Dip: Challenges Ahead for 2026
9 Jan
Summary
- December passenger car sales dropped 14% year-over-year.
- Electric vehicles now represent 57% of China's car market.
- Car exports surged 46% last month as domestic market saturated.

China's auto market saw a significant 14% drop in retail passenger car sales in December compared to the previous year, continuing to grapple with softening demand.
The shift towards electric vehicles is evident, with new-energy cars, including battery EVs and plug-in hybrids, capturing 57% of the market share in 2025. Retail sales of these greener vehicles increased by 18% annually.
Amidst domestic slowdowns, Chinese automakers are aggressively pursuing international markets. Passenger car exports soared by 46% in December, driven by a saturated home market and a strong push for global expansion.




