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flag China’s car sales flatlined in 2026 as domestic demand weakened, despite EVs outselling gas cars and exports rising.

flag China’s car sales are expected to remain flat in 2026 after growing just 3.9% in 2025, the slowest pace in three years, according to the China Passenger Car Association. flag Electric and plug-in hybrid vehicles outsold gasoline cars for the first time, but their growth slowed to 17.6% from 40.7% in 2024. flag Domestic demand weakened in late 2025 due to reduced trade-in subsidies, pushing automakers toward overseas markets. flag Car exports rose 19.4% to 5.79 million units, with EV exports surging 48.8%, though growth is expected to slow in 2026 due to weaker global demand and falling oil prices. flag BYD, China’s top automaker, saw its weakest domestic sales growth in five years but sold over 1 million vehicles abroad. flag Dealers expect lower sales targets, and a revised subsidy system based on vehicle price may reduce support for lower-cost models.

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