Chinese vehicle sales decline 2% in May

Chinese vehicle sales decline 2% in May Global Data Mon, June 15, 2026 at 4:05 PM GMT+7 5 min read Sales of Chinese-made vehicles, including exports, declined by 2.1% to 2.629 million units in May 2026 from 2.686 million units a year earlier, according to passenger car and commercial vehicle wholesale data compiled by the China Association of Automobile Manufacturers (CAAM). Domestic sales plunged by over 20% year-on-year to 1.699 million units last month, after rising by 10% to 2.135 million units a year earlier, while exports surged by over 69% to 930,000 units from 551,000 units.

Overall light passenger vehicle sales declined by 4.2% to 2.253 million units last month, while commercial vehicle sales rose by 12.5% to 376,000 units. Total vehicle production in the country declined by 1.2% to 2.616 million units.

China’s light passenger vehicle market this year has struggled against strong year-earlier volumes and has also been affected by the withdrawal of some government subsidies and tax exemptions for new energy vehicles (NEVs) at the end of last year. The government has also taken action this year aimed at ending the prolonged “race-to-the-bottom” price war among domestic manufacturers, which was seen as damaging to the industry’s long-term growth prospects, with automakers no longer allowed to sell their vehicles at below the cost of production. To help maintain affordability, manufacturers and dealers are now offering ‘ultra-long-term’ auto financing programmes, with repayment terms of up to eight years.