The China Passenger Car Association (CPCA) reported nationwide passenger vehicle retail sales of 1.545 million units in May, down 20% year-on-year but up 12% from April. On a cumulative basis, retail sales reached 5.628 million units in the first five months of 2026, a decline of 18% from a year earlier, indicating that the overall market remains in an adjustment phase. Weekly sales trends showed a clear recovery through the month. Average daily retail sales stood at just 31,000 units during the first week of May before gradually improving to 79,000 units in the final week. Market activity was supported by auto shows, new vehicle launches, and local consumption stimulus measures, which helped revive showroom traffic and consumer demand. Weekly sales volumes and growth rates in China from 2024 to May 2026 Wholesale performance remained comparatively stable. Passenger vehicle wholesale sales reached 2.232 million units in May, down 3% year-on-year but up 6% month-on-month. Cumulative wholesale volume for January-May totaled 10.209 million units, down 6%. Compared with retail sales, automakers maintained a steadier pace of production and dealer inventory replenishment. New-energy vehicles (NEVs) remained the primary growth engine of China’s auto market. Retail sales of NEV passenger vehicles reached 974,000 units in May. While this represented a 5% decline from a year earlier, sales rose 15% from April, lifting NEV penetration to 63%. Against the broader passenger vehicle market’s 20% year-on-year decline, the NEV segment demonstrated significantly greater resilience. On the wholesale side, growth continued. NEV passenger vehicle wholesale sales reached 1.365 million units in May, up 12% year-on-year and 11% from April, with penetration reaching 61.1%. Weekly wholesales volumes and growth rates in China from 2024 to May 2026 For the first five months of the year, cumulative NEV retail sales totaled 3.732 million units, down 14% year-on-year, while wholesale sales rose 2% to 5.318 million units. Production data further highlighted the accelerating shift toward electrification. Output of conventional gasoline-powered light vehicles fell to just 535,000 units in May, down 45% year-on-year and 20% from April. Meanwhile, production of hybrid and plug-in hybrid vehicles reached 379,000 units, rising 11% month-on-month. As internal combustion vehicle demand continues to contract, automakers are increasingly directing investment, production capacity, and product development resources toward electrified vehicles. Since the beginning of the second quarter, rising raw material prices, oil-price fluctuations, and supply-chain cost pressures have continued to affect automakers’ operating conditions. However, a wave of major NEV launches—including large SUVs, premium sedans, range-extended models, and plug-in hybrids—helped several leading automakers achieve record May new-energy vehicle sales for the period.
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