What is the CAAM's forecast for China's vehicle sales in 2026?

CAAM forecasts a 1% growth in vehicle sales for China in 2026, a significant slowdown from previous years.

Why are China's vehicle exports expected to slow down?

Exports are expected to slow due to geopolitical uncertainties, economic tensions, and the localization of production by Chinese automakers.

What factors are impacting domestic demand for vehicles in China?

Domestic demand is affected by residents' concerns over unsteady income and job insecurity, weighing on purchasing decisions.

Home / Business and Economy / China Auto Sales Slowdown: 1% Growth Expected

China Auto Sales Slowdown: 1% Growth Expected

14 Jan

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Summary

Vehicle sales growth projected at 1% for the year, down from 9.4%.
Electric and hybrid sales growth to halve from 28.2% to 15.2%.
Exports may see a slowdown in growth to 4.3%.

China Auto Sales Slowdown: 1% Growth Expected

The China Association of Automobile Manufacturers (CAAM) has projected a slowdown for the nation's vehicle sales and exports in 2026, citing sluggish domestic demand and persistent external uncertainties. Vehicle sales are anticipated to grow by a modest 1%, a significant deceleration from the 9.4% growth recorded last year. This overall slowdown is mirrored in the electric and plug-in hybrid vehicle segments, where sales growth is expected to fall to 15.2% from 28.2% previously.

Contributing to the muted outlook, insufficient domestic demand stems from concerns over unsteady incomes and job security among residents. Additionally, stricter regulations on zero-mileage used cars are expected to create short-term inventory pressures for automakers. The association also pointed to geopolitical uncertainties and economic trade tensions as factors that will likely dampen export performance.