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China car sales slide, but Chinese EV demand grows in Mexico
Passenger vehicle sales fell 20.2% in the first half of 2026, prompting the CPCA to cut its 2026 full-year retail sales forecast to a 14% decline.
OilPrice reports that China’s domestic passenger vehicle sales have fallen significantly in 2026, even as sales of Chinese-made cars have risen in some international markets such as Mexico, highlighting expanding global demand for Chinese vehicles. The outlet attributes the international growth to the rollout of a range of affordable, competitive Chinese electric vehicles from companies including BYD. OilPrice adds that China’s car market is on track for its worst year since 2021, with low consumer demand at home. Passenger vehicle sales were down 20.2% in the first half of 2026, and the China Passenger Car Association revised its 2026 full-year retail sales outlook to a 14% decline year on year. The CPCA expects final 2026 deliveries of 20.4 million units, down from 23.7 million in 2025, while cumulative 2026 sales total 8.7 million units. OilPrice also cites Citic CLSA research head Xiao Feng, who expects overall sales to fall around 20% year on year, while new electric and hybrid vehicle sales are expected to decline by about 5% to 6% year on year.