According to the latest data released by the China Passenger Car Association (CPCA), China’s passenger vehicle retail sales totaled 1.406 million units in April, down 20% year-on-year and 15% month-on-month. On a cumulative basis, retail sales since the beginning of the year reached 5.628 million units, down 18% year-on-year, indicating that the broader auto market remains in an adjustment phase. Compared with the aggressive sales push seen at the end of the first quarter, China’s auto market slowed significantly in April. Weekly data highlighted the shift in momentum. During the first week of April, average daily passenger vehicle retail sales stood at only 25,000 units. Weekly sales volumes and growth rates from 2024 to April 2026 By the fifth week, boosted by the opening of the Beijing Auto Show and the approach of the May Day holiday, daily retail sales rebounded to 100,000 units, up 25% sequentially. At the same time, vehicle price fluctuations have eased noticeably in recent weeks, while the pace of new model launches slowed compared with the first quarter. As the price war temporarily cooled, consumer wait-and-see sentiment increased. Meanwhile, dealer inventories remained elevated following the first-quarter sales push, prompting automakers to slow shipment volumes proactively. Wholesale data also reflected weaker market conditions. Passenger vehicle wholesale sales in April totaled 2.13 million units, down 3% year-on-year and 10% month-on-month. Cumulative wholesale sales for the year reached 7.997 million units, down 6%. Weekly wholesales volumes and growth rates from 2024 to April 2026 Despite the broader market slowdown, new energy vehicles (NEVs) remained the primary growth driver. NEV passenger vehicle retail sales reached 883,000 units in April, down 5% year-on-year but up 4% from March, with penetration rebounding to 62.8%. Compared with the overall passenger vehicle market’s 20% decline, the NEV segment remained relatively resilient. On the wholesale side, NEVs continued to post growth. April NEV passenger vehicle wholesale sales reached 1.22 million units, up 7% year-on-year and 7% month-on-month, lifting penetration to 57.3%. Cumulative data showed NEV passenger vehicle retail sales reached 2.792 million units year-to-date, down 17% year-on-year, while cumulative wholesale volume totaled 3.949 million units, down just 1%. From a production perspective, pressure on traditional fuel vehicles became more pronounced. China’s production of pure internal-combustion light vehicles fell to 629,000 units in April, down 32% year-on-year and 30% month-on-month. During the same period, hybrid and plug-in hybrid vehicle production totaled 305,000 units, down 20% year-on-year and 11% month-on-month. Overall, the launch momentum generated by the Beijing Auto Show 2026, combined with May Day holiday travel demand, has started to provide some support for terminal sales. As inventory pressure gradually eases, market momentum is expected to recover over the coming months.
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