Chinese Car Market 2026 – part 1: The Domestic Market
According to the China Association of Automobile Manufacturers (CAAM), China sold 30.1 million passenger vehicles in 2025. The article reviews how the Chinese market developed with a particular focus on new energy vehicles (NEVs), and discusses the outlook for the future. Passenger vehicle exports are a separate component of the market and will be illustrated in part 2 of the article. Overview Figure 1 illustrates the evolution of passenger cars sold by China including exports, over the past 20 years. Over this period, the market expanded substantially. Sales were disrupted by the COVID-19 pandemic but subsequently recovered. Growth from 2022 reflected several factors, including stronger demand and exports. More recently, trade restrictions and other market-access measures in some overseas markets have added uncertainty for Chinese automakers seeking to expand exports. Figure 1 China’s passenger car sales incl. exports 2006 -2025 Source: China Association of Automob...
