The China Association of Automobile Manufacturers (CAAM) today released the automotive industry production and sales report for May 2026. The report noted that China’s auto market continued its divergent pattern of “domestic demand under pressure, robust foreign trade” this month. Auto production and sales At the aggregate level, the industry maintained stable overall operation. In May, automobile production and sales reached 2.616 million and 2.629 million units respectively, up 1.6% and 4.1% month-on-month, but down 1.2% and 2.1% year-on-year. On a cumulative basis, from January to May, automobile production and sales reached 12.235 million and 12.207 million units respectively, down 4.6% and 4.2% year-on-year, with the declines narrowing compared to the first four months. However, underlying structural concerns lurk beneath the data. The domestic market showed a clear contraction trend: domestic auto sales in May were only 1.70 million units, a sharp year-on-year drop of 20.4%, continuing a double-digit decline. Conventional fuel vehicles performed particularly poorly, with domestic sales of only 650,000 units in the month, down 37.5% year-on-year. At the same time, auto inventories increased, and both conventional and new energy vehicle manufacturers faced significant inventory pressure. Auto exports By contrast, export volumes remained robust, becoming a core engine driving the development of China’s auto industry. In May, auto exports reached 930,000 units, up 3.1% month-on-month and 68.7% year-on-year, staying above 900,000 units for the second consecutive month; from January to May, cumulative exports reached 4.059 million units, up 63% year-on-year. Among these, new energy vehicles (NEVs) were the main driver of export growth. In May, NEV exports reached 446,000 units, a year-on-year increase of 1.1 times; cumulative exports from January to May reached 1.833 million units, also up 1.1 times year-on-year. NEV production and sales The highlight of the auto market in May was the counter-trend surge in the NEV sector. During the month, NEV production and sales reached 1.554 million and 1.496 million units respectively, up 22.4% and 14.4% year-on-year. The share of NEV sales in total automobile sales further increased to 56.9%, setting a new record high. In the NEV passenger vehicle segment, domestic sales accounted for 65.6%; in the NEV commercial vehicle segment, domestic sales accounted for 40.1%, a year-on-year increase of 58.4%. Passenger vehicle production and sales Looking at different vehicle types, passenger vehicles and commercial vehicles showed a sharp divergence in performance. In May, passenger vehicle production and sales reached 2.241 million and 2.253 million units respectively, down 3.1% and 4.2% year-on-year; domestic sales were only 1.444 million units, down 23.4% year-on-year. During the same period, the commercial vehicle market remained resilient, with production and sales reaching 375,000 and 376,000 units respectively, up 11.8% and 12.5% year-on-year. Among these, heavy trucks were the absolute growth driver, with May sales of 109,000 units, a sharp year-on-year increase of 23.3%; large and medium bus sales reached 9,000 units, up 8.6% month-on-month. Major group sales From the perspective of automakers, industry concentration remained high. From January to May, the top ten automakers (groups) by sales sold a total of 10.278 million units, accounting for 84.2% of total automobile sales. Compared with the same period last year, BYD’s cumulative sales reached 1.405 million units, down 20.3%; in addition, SAIC, FAW, Changan, and BAIC all saw declines of varying degrees. Major group exports From January to May, the total sales of the top fifteen NEV groups reached 5.613 million units, up 3.2% year-on-year, accounting for 96.7% of total NEV sales. In terms of exports, among the top ten exporters in May, Chery exported 182,000 units, up 80.4% year-on-year, accounting for 19.6% of total exports. Compared with the same period last year, FAW recorded the most significant growth, exporting 35,000 units, a 1.6-fold year-on-year increase. Among the top ten exporters from January to May, Chery led with 749,000 units sold, up 69.6% year-on-year, accounting for 18.5% of the total.
+4 others
