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China’s total vehicle sales fell 2.1% year-on-year to 2.6299 million units in May 2026, following a 2.5% decline in the previous month, according to data from the China Association of Automobile Manufacturers (CAAM). New energy vehicle (NEV) sales rose 14.4% year-on-year to 1.496 million units in May, accelerating from 9.7% growth in April, with NEVs accounting for 56.9% of total vehicle sales. Meanwhile, domestic sales plunged 20.4% year-on-year in May. In contrast, vehicle exports surged 68.7%, serving as a key driver of the sector, which has increasingly relied on overseas shipments to offset weakness in the domestic market. “Stabilizing domestic demand this year should be regarded as a very important task for the automotive industry,” said Chen Shihua, deputy secretary-general of the CAAM, as Reuters reported. Last year, China’s vehicle sales increased 9.4% year-on-year to a record high of 34.4 million units, up from a 4.5% increase in 2024, while NEV sales surged 28.2%.
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