Retail sales of light passenger vehicles in China, including sedans, MPVs, and SUVs, continued to decline sharply in April 2026, falling by over 21% to 1.384 million units from 1.780 million units a year earlier, according to data compiled by the China Passenger Car Association (CPCA). Retail sales of new energy vehicles (NEVs) declined by 7% to 849,000 units last month, with BEV sales rising by 2.4% to 579,000 units, while PHEV sales fell by over 25% to 192,000 units.
Exports continued to grow strongly last month, rising by 81% to 769,000 units, driven by a 112% surge in overseas shipments of NEVs to 406,000 units.
The Chinese domestic light passenger vehicle market is struggling following the recent withdrawal of some government subsidies and tax exemptions for new energy vehicles (NEVs). The economy expanded by a better than expected 5.0% year-on-year in the first quarter of 2026, after growth slowed to 4.5% in the previous quarter, driven mainly by strong exports despite the import tariff hikes by the US last year. Consumer spending picked up slightly in the first quarter, helped by recent government stimulus measures, but growth remained sluggish at 2.4% year-on-year.
In the first four months of 2026, the domestic light passenger vehicle market declined by almost 20% to 5.61 million units from 6.97 million units in the same period last year, with all major segments falling sharply, including NEV sales which declined by 17% year-on-year.
Earlier this year, the Chinese government confirmed that it will continue its vehicle trade-in subsidy programme in 2026, as part of its broader policy of driving up domestic consumption, but has reduced its NEV purchase tax incentive from a full exemption to a 50% discount. GlobalData forecasts a 1% increase in light vehicle sales to 27.1 million units in 2026, up from 26.9 million units in 2025, followed by a 2% decline in 2027 as the effectiveness of government incentives wears off.
“China’s PV retail sales fall by 21% in April” was originally created and published by Just Auto, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
