China Passenger-Car Sales Slump in October Despite Export Boom — Update
By Jiahui Huang
China's auto sales declined again in October, as weak domestic demand pushed automakers to increasingly look for overseas for growth.
Retail sales of passenger cars fell 27.1% in October from a year earlier to 1.64 million units, the China Passenger Car Association said Monday. Sales rose 1.5% from September.
The country's auto market failed to stage a recovery in October, traditionally a peak sales season, extending its decline to 14 consecutive months. Weaker demand from first-time buyers, higher oil prices and subdued consumption weighed on sales, the association said.
After years of rapid expansion, China's auto market faces mounting headwinds from additional battery consumption taxes, lower export rebates starting in April 2027, rising material costs and tougher export requirements, Nomura analysts wrote in a recent note. These pressures will further squeeze automakers' profitability amid weak domestic demand, they added.
New-energy vehicles, which include electric vehicles and plug-in hybrids, and exports have emerged as key growth drivers for China's auto industry.
NEVs accounted for 67.5% of total passenger-car sales in October, the association said. However, retail sales of NEVs fell 13.7% from a year earlier to 1.11 million units in October.
To offset slowing demand, many Chinese automakers have increasingly turned to overseas markets for growth. China's NEV exports more than doubled from a year earlier in October, while total passenger-car exports rose 68.5% to 928,000 units, CPCA data showed.
Tesla exported 59,012 vehicles manufactured at its Shanghai plant in October and sold 67,829 units.
Chinese car export growth is expected to slow to 10% next year after posting rapid expansion this year, said Cui Dongshu, the CPCA Secretary General, adding that the trajectory for next year will depend on the recovery in the Middle East market.
November is typically a slow month for China's auto market, the CPCA said. Any recovery in sales will depend on whether consumer confidence improves, the association added.
China's auto market is entering a "knockout stage," with further consolidation and industry cooperation increasingly necessary to restore sentiment, Nomura said.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
November 09, 2026 03:06 ET (08:06 GMT)
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