China's domestic car demand under pressure, association exec says

China's car market faces a tough year. Domestic demand has fallen significantly. This trend is expected to continue until 2026. The automotive industry is focusing on stabilizing sales at home. Vehicle exports are surging, providing a crucial boos...

Reuters
Cars drive on Changan avenue in Beijing, China
Beijing: China's domestic ​car demand ​has declined more sharply ​than expected at the start of the year and will likely ‌remain under ⁠heavy ⁠pressure throughout 2026, an ​auto association executive said on Wednesday.

"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 China Association of Automobile Manufacturers (CAAM).

China's total ​vehicle sales dropped 2.1% ​in May from a year earlier, while sales at home slid 20.4% year on year, ‌CAAM data showed on Wednesday.


Vehicle exports jumped 68.7% ​on year ​last ⁠month to remain as a key driver of the sector that has ​increasingly relied on overseas shipments to offset domestic weakness.
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