China Passenger Car Retail Volume Dropped 22% YoY to 317K in Early August

China’s passenger vehicle market started August on a weak note, with retail sales falling 22% year-on-year in the first nine days, while new energy vehicles continued to hold firm.

According to the latest data released by CPCA, passenger vehicle retail sales in China totaled 317K units during Aug. 1-9, 2026, down 22% year-on-year and 3% from the same period last month.

Wholesale deliveries from automakers reached 276K units during the period, down 24% year-on-year but up 2% compared with the previous month.

For the first eight months of 2026, cumulative passenger vehicle retail sales reached 10.49M units, down 20% year-on-year. Wholesale sales totaled 15.086M units, down 5%, indicating the market remains under adjustment pressure.

Weekly sales trends showed a slow start to August, with average daily retail sales standing at 35K units during the first week, down 22% year-on-year and 3% from the previous month. The market continued July’s seasonal slowdown at the start of August, with consumer demand recovery moving at a slower pace.

On the wholesale side, automakers averaged 31K units per day in the first week, down 24% year-on-year and up 2% from the previous month.

New energy vehicles remained relatively resilient. From Aug. 1-9, new energy passenger vehicle retail sales reached 195K units, down 17% year-on-year and 4% from the previous month. Retail penetration stood at 61.6%.

Wholesale sales of new energy passenger vehicles also reached 195K units, down 5% year-on-year and up 5% month-on-month. Wholesale penetration climbed to 70.9%.

Since the beginning of the year, cumulative NEV wholesale sales reached 8.443M units, up 7% year-on-year. Retail sales totaled 5.864M units, down 13%.

The CPCA said the early August decline was linked to both macro conditions and industry factors. International oil prices moved higher in July. Domestic fuel prices were raised twice, with cumulative increases of nearly RMB 985 ($136) per ton. Higher fuel costs weakened demand for traditional gasoline vehicles.

Meanwhile, NEV prices have stabilized, leading some consumers to delay purchases while waiting for better timing. High-temperature holidays among major automakers also slowed shipment schedules at the beginning of August, weighing on wholesale figures.

Production trends continued to diverge between new energy vehicles and gasoline-powered models. During the first week of August, output of pure gasoline-powered light vehicles reached 422K units, down 54% year-on-year and 13% from the previous month.

Meanwhile, production of hybrid and plug-in hybrid models totaled 371K units, down 18% year-on-year and unchanged from the previous month. The widening gap highlights the accelerating shift from traditional fuel vehicles toward electrified powertrains.

Overall, despite a weak start to August, NEVs remain a key growth driver for China’s auto market. The CPCA expects vehicle demand to improve from mid-to-late August as the school season approaches. Trade-in subsidies remain well funded, while local policies are gradually becoming more supportive. These factors are expected to accelerate market recovery.